Author: DGPC Media

The Bhutanese | Tenzing Lamsang | June 8, 2024

Last year Bhutan and India agreed to drill multiple rock samples into the right bank area to check for its stability to see if a dam is feasible or not.

Currently the joint Technical Coordination Committee with member from both sides has not finalized its report.

However, there are two reports submitted based on the same rock drilling samples with one report submitted by the Indian team and another report by the Bhutanese group.

The two sides are supposed to sit together and finalise a final report on whether the dam should go ahead or not.

The Joint Technical Committee has six experts each from both sides. The reports are being reviewed and it is yet to be finalized.

The report from the Indian side has been compiled by Central Water Commission, WAPCOS and Geological Survey of India.

On the Bhutanese side the Druk Green Power Corporation, Department of Energy and Department of Geology and Mines have studied and compiled the report.

The same rock samples have been studied by both sides. The rocks show fractures along the whole right bank in lots of places where boreholes have been done.

On the Bhutanese side the main focus is on the need for a thorough mitigation and right bank stability and the dam is not even being discussed before that.

“From the Indian team, we need to hear about the mitigation measures and for them to tell us to not worry and that they will care of everything and then we will go ahead,” said a source.

“From the Indian side, they are accepting that that there are now problems and now they are all saying one thing.”

“They are saying meantime we go ahead with the dam which we are not agreeing with as we want mitigation measures in place.”

After the Joint Technical Committee finishes its works the PHPA Authority will take the final call.

Background

Earlier an expert committee that had been set up by Bhutan and the Government of India (GoI) were unable to agree on the future course of the 1,200 MW Punatsangchu-I, with the Bhutanese side insisting on a barrage due to safety concerns over the dam site, and the Indian side insisting that the dam can be done at the dam site.

The Bhutanese side softened its stance in 2023 and has agreed to do a set of geo technical investigations on the right bank area and the dam site near it.

The findings are to look at the geological conditions.

Based on these geological conditions the next stage will be to see if a dam can be built there and also what are the additional stabilization measures that are required.

Kuensel | Yangyel Lhaden | June 8, 2024

After more than three years of inactivity, the wind turbines in Rubesa are finally set to return to service. The Ministry of Energy and Natural Resources (MoENR) is currently conducting on-site repairs and replacing gear systems in the turbines.

The Rubesa wind turbines, which used to generate around Nu 5 million annually, have not been operational due to issues with the wind blades and gears.

The pair of wind turbines was inaugurated in 2016 as part of a pilot project to demonstrate the technical feasibility of generating wind power in the country and to enhance energy security by diversifying energy supply through alternative renewable energy technologies.

It was developed at the cost of Nu 177 million(M) funded by the Asian Development Bank.

According to its Renewable Energy Management Master Plan (2016), the country has the potential to produce 12 gigawatts (GW) of solar energy and 760 megawatts (MW) of wind energy.

However, only 600 Kilowatt (Kw) of wind energy have been harnessed in the country through the wind farm, with each wind turbine having a capacity of 300 kW. The 600 KW wind turbines produce just 0.079 percent of the technically feasible wind energy potential of 760 MW in the country.

The wind turbines are connected to the national grid; at full capacity has the capacity to cater to energy needs of 300 households.

Until December 2020, the two turbines generated 4.82 million units of electricity, generating an income of Nu 24.566 M. On average, the turbines generated 1.2 million units of electricity every year.

“We are conducting feasibility studies for wind farms in Gaselo and Rubesa with a capacity of about 23 megawatts,” an energy department official said. “We are currently working on the project structure, but intermittency in power generation from such resources remains a challenge.”

The official also highlighted the challenges in locating suitable sites for renewable technologies, particularly those that necessitate large tracts of land, such as utility-scale solar farms. “There is an apparent conflict of land use by communities. Getting community and environmental clearances is increasingly difficult.”

The bigger issue, he added, was securing financing to develop renewable energy resources.

Meanwhile, as an integral part of achieving energy security, the 13th Plan looks at developing 500 MW of alternative renewable energy by 2029 and increase it to 1000 MW by 2034.

Kuensel | Thukten Zangpo | June 7, 2024

With plans to construct more projects

With plans to construct more hydro projects in the coming years, especially small hydro projects, the country’s hydro debt is expected to rise.

The government has allocated Nu 310 billion for the hydro and renewable energy which falls outside the 13th Plan budget outlay of Nu 512 billion.

The country’s hydro debt has been growing over the years. However, its share of gross domestic product (GDP) has been decreasing.

As of March, this year, the hydro debt was reported at Nu 167.5 billion which constituted 64.1 percent of total external debt and 62.8 percent of the GDP estimate.

These hydro debts were for six hydropower projects—Mangdechhu, Punatsangchhu-I, Punatsangchhu-II, Nikachhu, Dagachhu, and Basochhu.

The hydro debt in March 2021, at Nu 160.04 billion, has increased to Nu 162.2 billion in March 2022, and to Nu 167.74 billion in March 2023.

The hydro debt in March last year was equivalent to 82.8 percent of GDP and 69.6 percent of total external debt.

Finance Minister Lekey Dorji, recently said that Bhutan with the natural advantage of developing hydropower plants will pursue developing hydropower plants.

Hydropower plants with complete detailed project reports need to start as soon as possible and the government is working on projects such as Kholongchhu, Chamkharchhu, while the finance ministry is developing the financing modality, he added.

	2021 (March)	2022 (March)	2023 (March)	2024 (March)
Total	160.04	162.2	167.74	167.5
Percent of GDP	85.7	85.7	82.8	62.8
Percent of external debt	74.2	73	69.6	64.1

Lekey Dorji said that the government is also diversifying the energy mix with developing many small hydro projects, wind, and solar including geothermal energy.

The government has started construction of small hydro projects with the total capacity of 365 megawatts (MW) in Suchhu, Yungichhu, Burgangchhu, Jomori, Gamri-I, Bindu I and II, Begana, and pumped storage project (1,800MW) in Gongri- Jerichhu.

In the 13th Plan, the government aims to install 500MW of solar and 23MW of wind energy.

“The government does not take indiscriminate hydro loans, most are concessional loans with interest less than 1 percent and longer duration of loan repayment up to 40 years,” the minister said, adding that the hydro loans are self-liquidating.

He added that the government made the Public Debt Policy in 2016, reviewed later in 2023 to regulate and manage the country’s debt.

According to the Public Debt Management Policy 2023, the non-hydro debt should not exceed 55 percent of GDP annually.

The non-hydro debt stood at Nu 93.62 billion, constituting 35.9 percent of total external debt and 35.1 percent of estimated GDP as of March this year.

In the 13th Plan, the government has set an ambitious goal of doubling the GDP to USD 5 billion by 2029.

“As the GDP grows, the government has more fiscal space to borrow and it can create more public spending which leads to further growth in GDP,” the finance minister said. However, ensuring most of the resources must go to the productive sector.

National debt was reported at Nu 293.09 billion as of March this year equivalent to 109.8 percent of GDP. External debt was Nu 261.12 billion and domestic debt at Nu 39.97 billion.

Kuensel | Dechen Dolkar | May 18, 2024

…Bhutan had to import electricity at Nu 10 per unit from IEX

Electricity imports during the lean season increased significantly compared to last year, despite the commissioning of the 118MW Nikachhu Hydropower Project at the end of last year.

From December 2022 to March 2023, Druk Green Power Corporation (DGPC) imported 367.17 million units of electricity, worth Nu 1.75 billion.

From December 2023 to May 13, 2024, DGPC purchased a total of 1,447 gigawatt hours (GWh) of electricity from the Indian Energy Exchange (IEX) at a total cost of Nu 6.07 billion, inclusive of fees and charges. DGPC imported electricity at rates ranging from Nu 1.2 to Nu 10 per unit from the IEX.

The export of electricity has witnessed a significant drop over the years. In 2021, Bhutan exported electricity valued at Nu 24.2 billion. This figure decreased to Nu 22.47 billion in 2022, and last year, Bhutan exported electricity worth Nu 16.67 billion.

However, according to the Power Purchase Agreement (PPA), the 118MW Nikachhu Hydropower Project exports 68 percent of its production to India, with only 32 percent allocated for domestic consumption.

Additionally, DGPC has been importing electricity for almost six months, from December 2023 until May 2024.

In the past, DGPC imported electricity only for three months. This increased to four months in 2022. Given the rise in domestic demand and low hydropower generation, the pressure on imports has been increasing.

According to an official from DGPC, the drastic increase in electricity imports is attributed to the rise in high voltage demand.

The official from DGPC said that based on the historical hydropower generation trend in Bhutan, generation was expected to increase from April onwards. However, observations of hydrology this year indicate barely any increase in river inflows. “Therefore, power continues to be imported during May this year to meet the energy deficit.”

Bhutan is currently importing up to 450 MW during solar hours, importing during daytime only.

The official said that imports were projected to continue until the third week of May if there is some rain and improved hydrology. However, if there is no increase in generation due to the continuing poor hydrology, imports from India might be required until the end of May.

In May 2024, the maximum daily average generation of all the plants until May 13 was 836 MW, while the average daily generation was 762 MW.

The plants incudes Tala, Kurichhu, Chhukha,  Basochhu, Mangdechhu hydropower plant (MHP), Dagachhu projects and  Nikachhu Hydropower project.

Electricity is purchased from the Day Ahead Market (DAM) of the Indian Energy Exchange (IEX) through a competitive bidding process.

In the exchange, the prices are determined through a day-ahead double-sided auction from both buyers and sellers for every 15-minute time block.

The import prices depend on the time of the day and the demand-supply scenario for that 15-minute block period.

Last year, the average daily market clearing price (MCP) at the Indian Energy Exchange (IEX) reached as high as INR 8.99 per unit on February 28, 2023.

Kuensel | Staff reporter | April 20, 2024

…to generate an estimated 310MW of renewable energy

Bhutan and the European Investment Bank (EIB) signed the first-ever EIB project supporting reliable, green, energy for communities in Bhutan through a 150 million Euro loan with a tenure of 30 years.

The renewable energy framework loan was signed on the margins of the International Monetary Fund and the World Bank spring meetings on April 17 between the Finance Secretary, Leki Wangmo and Acting EIB Global Managing Director, Markus Berndt, in the presence of the President of the EIB, Nadia Calviño in Washington D.C., the USA.

According to the press release from the finance ministry, Bhutan, being one of the only three net-carbon negative countries in the world, the project will support construction of small to mid-size run-of-river hydropower plants and solar photovoltaic generations to diversify the power generation mix to meet its ambitious Nationally Determined Contribution target of permanent carbon neutrality.

The EIB President, Nadia Calviño, said, “Bringing green, reliable and affordable energy to communities around the world, especially in more remote regions, has huge benefits not just in environmental terms but also by improving access to health, education and economic activity. That’s why I am delighted that we’ve been able to agree to this 150 Euro million investment with our Bhutanese partners, under the EU’s Global Gateway initiative. We look forward to working as a key partner for climate action and sustainable economic development in Bhutan.”

At the same time, the Finance Minister, Lekey Dorji said, “As Bhutan strives to maintain its carbon-negative status amidst rising global challenges, this partnership not only strengthens Bhutan’s renewable energy sector but also contributes to the broader regional and global effort in combating climate change. We welcome the EIB as our partner in our pursuit of the sustainable development goals and look forward to more collaboration in the future as we take forward our agenda of building a more sustainable planet.”

Bhutan is highly vulnerable to the impact of climate change and is committed to increasing access to energy without increasing carbon emissions.

With the 150 million Euro financing, it will support installation of an estimated 310 megawatts (MW) of hydropower and solar power generating capacity. The initiative is expected to generate around 670 gigawatt hours per year.

The new projects, to be implemented by Druk Green Power Corporation, will contribute to climate action, helping Bhutan to strengthen its energy security, and increase use of renewable energy.

Additionally, the expanded solar photovoltaic capacity will also address hydropower challenges during the dry season, reducing the potential need for energy imports when river flows and hydropower generation capacity are reduced. The project will also allow clean energy to be traded across borders, improve access to green power, supplying thousands of households with reliable and affordable energy, and allowing Bhutan to profit further from its renewable energy resources.

BBS | Samten Dolkar | April 15, 2024

The International Solar Alliance will be providing a grant of about USD 200,000 to 300,000 to Bhutan to advance the country’s solar technology. The fund will be used to establish a Solar Technology Application Resource Centre or STAR C at the College of Science and Technology in Phuentshogling. It is expected to become a hub for solar technology research, development, and application in Bhutan. This marks a milestone for the country since joining the International Solar Alliance in October 2022.

After obtaining membership in the ISA, Bhutan was identified as one of the three focus countries to establish the Solar Technology Application Resource Centre as a regional-level initiative under the International Solar Alliance and the United Nations Industrial Development Organisation.

The centre aims to harness the abundance of sunlight in the region to drive innovation in renewable energy solutions.

It will serve as an important resource centre for both academic study and practical implementation.

“This is a laboratory where you will be testing the solar applications technology as well and there will be a training component. So, what it means is that the STAR C will be able to test the products that we will be importing to the country for solar energy, and it will also be a standard that we can use to see whether the solar products that we import are up to certain standards or not. And the lab will also provide training to the technicians who will go and install the equipment in the field, on the ground,” said Karma Tshering, National Focal Point of International Solar Alliance.

As a part of the collaboration, the Country Partnership Agreement for a duration of two years from April 2024 to December 2026 was signed between the ISA and the Ministry of Energy and Natural Resources for identification and implementation of the programmes and projects under the ISA’s support. For the establishment of the STAR Centre, a Memorandum of Understanding was signed between the ISA, and the Ministry of Energy and Natural Resources and the Royal University of Bhutan.

The agreement includes broad proposals to enhance the deployment of solar technologies and applications in the country.

“This is a very important day in the history of the ISA because we have seen Bhutan as a great partner, partly, because in the winter months, Bhutan becomes a net importer of electricity instead of a net exporter of electricity. Consequently, we need to work with you, so that all the available electricity can be exported and as much as needed electricity within the country could be made by solar at comparable prices,” said Ajay Mathur (PhD), Director General of International Solar Alliance.

The College of Science and Technology says the establishment of STAR C will be a significant opportunity to enhance its capabilities.

“For a college that delivers engineering and technological programmes, what we are expecting from this STAR-C introduction is to train expertise who deals with hydropower, as well as solar power energy and renewable energy. What we are expecting out of this STAR-C is, in the long run, as a college when we embark on establishing the renewable energy related to the course, our students and faculty will be much more educated on renewable energy,” said Cheki Dorji (PhD), President of College of Science and Technology.

Under the ISA’s support, another USD 50,000 will be provided to Bhutan to install two solar-powered cold storages of five-metric-tonnes capacity in Paro and Zhemgang on a pilot basis.

Globally, the ISA’s mission is to mobilise one trillion US dollars of investments in solar by 2030 through joint efforts towards the objective of enhancing energy access, ensuring energy security, and facilitating the energy transition to solar as the preferred energy source in member countries for a carbon-neutral future.

Kuensel | Dechen Dolkar | March 28, 2024

The Phase-I geological investigation studies at the dam site and the right bank side of the 1,200MW Punatsangchhu Hydroelectric Project (Puna-I) have been completed. These studies were conducted by WAPCOS.

Phase-II is yet to commence.

The geological model must be evaluated and validated.

The Minister for Energy and Natural Resources, Gem Tshering, said that the geological studies regarding the stability of the rock have been completed. WAPCOS, an independent consultant along with the project management, conducted the geological investigation.

Lyonpo said that WAPCOS will submit a report to the The Joint Technical Coordination Committee (TCC). The joint TCC will convene to review the findings.

Lyonpo said that during the joint TCC meeting, the experts from the other side will need to convince their Bhutanese counterparts regarding options that ensure the implementation of all remedial measures.

Lyonpo said that the decision would be contingent upon the joint TCC.

TCC will present the final decision to the PHPA authority, which will then proceed to finalize the course of action accordingly.

TCC is expected to convene and make a decision by the first or second week of April. Following this, an authority meeting will be promptly scheduled within a day.

One of Bhutan’s foremost concerns revolves around the safety and stability of the dam. This concern is rooted in the potential downstream impacts of any dam failure on lives and properties.

The Bhutanese side emphasised the importance of building a technically secure and cost-effective dam for the success of the project.

Multiple landslides on the right bank of the dam prompted the construction of the barrage. The project encountered the first landslide in July 2013, followed by incidents in August 2016, and January 2019.

Following Indian Prime Minister Narendra Modi’s recent visit, the two governments have decided to review and finalise project-specific implementation modalities for new projects, including reservoir hydro projects.

Lyonpo said that the two ministries would collaborate to determine the most suitable modalities for implementing new hydropower projects.

Kuensel | Dechen Dolkar | March 23, 2024

…two govts signed seven MoUs yesterday

Bhutan and the Government of India signed a Memorandum of Understanding (MoU) to enhance co-operation in the field of energy efficiency and energy conservation measures in Thimphu yesterday.

The MoU  was signed between the Bureau of Energy Efficiency, Ministry of Power, government of India and the Department of Energy, Ministry of Energy and Natural Resources, government of Bhutan.

Prime Minister Tshering Tobgay and Prime Minister Narendra Modi witnessed the exchange of seven MoUs between their respective foreign secretaries, further strengthening the scope and depth of the cooperation and friendship between Bhutan and India.

Both Prime Ministers agreed that the Bhutan-India energy partnership has the potential to benefit both countries by enhancing energy security, strengthening their economies, generating employment, enhancing export earnings, and contributing to the further development of industrial and financial capacities.

During Prime Minister Narendra Modi’s visit to Bhutan, both governments agreed to review and finalize project-specific implementation modalities for new projects, including reservoir hydro projects.

The Government of India will also facilitate necessary access to financing from financial institutions in India as well as the market for power sales for new and upcoming hydro-power projects in Bhutan.

Both governments agreed to engage in the development of new energy projects in the fields of hydropower, solar and green hydrogen, including through the participation of Indian entities as strategic partners.

The two Prime Ministers agreed that there are unprecedented opportunities to further strengthen this mutually beneficial bilateral clean energy partnership, including through the development of new energy projects and trade in electricity.

It was also agreed that market access to Bhutanese power producers will be facilitated by applicable domestic regulations and procedures, through mutually agreed arrangements and delivery points.

The two countries also agreed to hold regular consultations for enabling investments in energy projects of Bhutan, and for ensuring seamless cross-border trade in electricity.

Both Prime Ministers agreed to expedite the movement on projects and initiatives based on the Joint Vision Statement for mutual benefit.

MoUs were also signed between the two governments on cooperation in sports and youth and the general supply of petroleum, oil, lubricants (POL), and related products from India to Bhutan.

An MoU was also signed on the agreement for recognition of the official control exercised by the Bhutan Food and Drug Authority (BFDA) by the Food Safety and Standards Authority of India (FSSAI).

Additionally, MoUs were signed between the Bhutan Food and Drug Authority and the Indian Pharmacopoeia Commission on cooperation concerning the sharing of reference standards, Pharmacopoeia, vigilance, and testing of medical products.

An MoU between the National Knowledge Network of India (NKN), National Informatics Centre, Ministry of Electronics and Information Technology, and Government Technology (GovTech), Agency (Druk Research and Education Network) on Peering Arrangement was also signed.

Furthermore, MoUs were signed on a joint plan of action on space cooperation between the Indian Space Research Organisation and the Government Technology Agency.

Kuensel | Dechen Dolkar | March 19, 2024

The Detailed Project Report (DPR) for the Kuri-Gongri Hydro-Electric Project indicates a potential annual electricity generation capacity of 2,800 megawatts (MW).

The Kuri-Gongri Hydro-Electric Project’s DPR was undertaken by the Indian consultancy firm WAPCOS Ltd. This consultancy has been engaged in the feasibility study of the project since 2017.

The DPR, finalised last year, incurred cost totalling approximately Nu 400 million.

At present, the draft DPR is under review by the respective governments involved. The finalization of the report is expected to be completed by June.

The project site has been pinpointed in close proximity to the confluence of Kurichhu and Gongrichhu in Mongar.

As per the DPR, the Kuri-Gongri Hydro-Electric Project is projected to generate approximately 9,011.59 gigawatt-hours (GWh) of energy annually. The estimated cost of the project stands at around Nu 307 billion, calculated based on a levelised tariff rate of Nu 6.13 per kilowatt-hour (kWh).

The project is expected to bring economic development for the locals in the area with revenue generation on Nu 30 billion annually.

The report highlights that several gewogs in Mongar, Pemagatshel, and Trashigang will be impacted by the project, with some facing the loss of farmland due to its implementation.

The project will be required to adhere to government guidelines concerning the acquisition of land and compensation for affected families.

This includes remuneration for acquired lands, structures, personal property, cultivable lands, and fruit trees, with a focus on minimising disruption to the livelihoods of affected families.

According to a project official, the project will be obligated to lease land and provide fair and generous rental fees, in accordance with government guidelines.

The project is anticipated to necessitate a total budget of Nu 739 million for rehabilitation and resettlement (R&R) activities.

The project official clarified that the mentioned amount is exclusive of funds required for area development activities and compensation to be provided to families indirectly affected, whose crop yields or fruit trees will be impacted by the project.

The project is anticipated to be completed within a timeframe of 10 years from its commencement.

The project includes plans for greenbelt development, such as plantation along the boundaries of project colonies. Additionally, the inter-connecting roads of various project components within the colonies and working sites will be adorned with avenue plantation.

Furthermore, available space within the colonies will be designated for greenbelt purposes, facilitating the plantation of fruit, ornamental, and shade trees, along with shrubs and climbers.