Author: Dotu

Kuensel | Dechen Dolkar | October 16, 2023

The 118MW Nikachhu Hydropower Project in Trongsa is 96.29 percent complete and is expected to commission by the end of December this year.

The remaining major and critical works are lining and plugging of face-six and face-seven of the head race tunnel and some hydromechanical works at the dam, which will be completed by November.

According to the project management, the electro-mechanical testing for the various equipment installed inside the powerhouse is already being done and the final supervisory control and data acquisition (SCADA) integration and testing is currently ongoing and will be completed this month.

“Dam impounding will take place in November,” the project management said.

There were 173 employees in the project and currently, 112 employees are left with the project.

The project management said that tentatively around 57 employees will be recruited for the operation and maintenance of the plant.

The total approved project cost is Nu 11.89 billion (B), which is financed in the debt-equity of 65:35. The project has spent around Nu 12.8B so far.

The project official said that the Power Purchase Agreement (PPA)’s levelized tariff is Nu 4.05 per unit and the initial quoted tariff starts at Nu 3.30 /kWh with annual escalation till 15 years. “The tariff will increase every year.”

The official said that the project faced numerous geological challenges right from its inception. The rock mass at the dam site was exceptionally poor, requiring the implementation of various additional measures and support systems.

The official said that in addition to dealing with challenging geological conditions, the project had to contend with significant water ingress, causing a considerable slowdown in the excavation process.

To address this issue, the project employed additional support systems and turned to polyurethane grouting.

“As we approach the commissioning phase of the project, we are pleased to report that these geological surprises no longer impede our progress,” the project official said.

The official said that a silver lining for this project has been the discovery of solid rock mass during the powerhouse excavation.

The project is a 100 percent subsidy company of Druk Green Power Corporation (DGPC).

The Wire | October 15, 2023

Environmental activist and water and dam safety expert Himanshu Thakkar told The Hindu that the likely change in design is an “admission of a major failure by these agencies”.

New Delhi: After the Sikkim Teesta disaster that resulted in the destruction of the 1,200 MW Teesta-III dam and left nearly 100 people dead, two of the three India-funded mega hydro projects currently being constructed in Bhutan have now come under the scanner and changes are being made in their design, reported The Hindu on Sunday, October 15.

The two projects are the 1,200 MW Punatsangchhu Stage-I (Puna-I) and the 1,020 MW Punatsangchhu Stage-II (Puna-II), on the Punatsangchhu River, less than 100 km from Bhutan’s capital, Thimphu. Per The Hindu, the projects, along with the 660 MW Kholongchu project, are estimated to cost ₹21,637.28 crore, and are being funded by India and will benefit northern and eastern Indian states.

Per the report, the Central Electricity Authority (CEA) uploaded a note in February this year (and updated in August) on the projects completed, being constructed, and pursued under a 2006 agreement on cooperation in the field of hydroelectric power signed between the two countries.

Per the CEA note, the Puna-I is expected to be commissioned in 2024-25, but that the commissioning is being delayed “due to movement/subsidence of right bank hill mass in the dam area”. It also added that: “Treatment/stabilisation of the right bank and completion of dam work under progress. The option of providing a barrage in the upstream and abandoning of the dam is being studied.”

Per the note, the Puna-II is targeted for commissioning in 2023-24. The Hindu reported that as per the note, “remedial measures are under progress” and that there were “poor geological strata and shear zone” at the left bank and foundation of the dam and its head race tunnel (which connects the water intake at a dam site to the powerhouse for hydropower generation).

Environmental activist and water and dam safety expert Himanshu Thakkar told The Hindu that the likely change in design is an “admission of a major failure by these agencies”.

International landslide experts like Dave Petley have pointed out that it was “a blunder to start a dam at the location that seems to be on the debris of past landslides”, he also told The Hindu.

The Hindu quoted anonymous Indian government officials as saying that “no final decision has been taken on the Bhutan projects” and that experts were studying the “technical aspects” of the projects including geology.

However, Bhutan’s Prime Minister Lotay Tshering told The Hindu that he was confident that the problems would be resolved. Bhutanese technical experts have said that if the dam is not feasible, then probably a smaller dam or barrage is required. On the other hand, Indian government experts have said that the dam is “feasible,” the PM told The Hindu.

According to one estimate, about 75% of all electricity generated in Bhutan is exported to India and the revenue from the exports constitutes 25% of its gross domestic product.

Local communities living in areas near dams in Bhutan have reported similar issues as seen in houses near dams in the Indian Himalaya: cracks on their houses, which first occurred right after the project work for a dam began. For instance, Third Pole reported in 2020 that houses near the Mangdechhu Dam on the Mangdechhu River in Bhutan – commissioned and funded by India. Per one report, it is one of the 13 hydro projects developed as part of Bhutan’s initiative to generate 10GW of hydropower with support from India.

Kuensel | Dechen Dolkar | October 12, 2023

Basochhu hydropower plant started exporting its surplus power to the Indian Energy Exchanges (IEX) at Nu 10 per unit after a successful bid yesterday. It earned an estimated Nu 14 million  on the first day.

The generation is expected to fall and the tariffs in IEX are likely to drop fast with summer ending and demand decreasing.

The export will continue until May 2024. However, from December 2023 to April 2024, there will be no export from Basochhu as Bhutan will have a deficit and will actually be importing from the IEX.

The exchange operates similarly to a stock market for electricity, with both buyers and sellers.

The Market Clearing Price (MCP) is determined for the day ahead in 15-minute blocks based on prices bid into the market. As a result, tariffs could defer for every 15-minute block based on real-time supply and demand situations in the energy market. There is a market-clearing price cap of INR 10 per unit.

Most of the larger power plants in Bhutan are tied to long-term power purchase agreements (PPAs) and cannot be transacted through the IEX. However, power plants with no long-term PPA commitment such as Basochhu can transact its electricity through the IEX.

Since Bhutan has started purchasing power from the IEX, Bhutan had requested the government of India to allow Basochhu power to be sold into the IEX as a test case for future transactions in the IEX.  Based on this, Bhutan has agreed to come under India’s Deviation Settlement Mechanism starting 2024.

The official from Druk Green Power Corporation (DGPC) said that it is a momentous day for electricity trade between Bhutan and India with another door opening for the sale of Bhutan’s surplus power.

The official from Basochhu hydropower plant said that while the approval to trade Basochhu power on the IEX was received a couple of months ago, it took some time to sort out the required systems and procedures for energy accounting and reconciliations at the Bhutan-India border point for Basochhu power.

The official from the Basochhu hydropower plant said that the losses in the transmission system need to be accounted for upon delivery at the Bhutan-India border.

“When the power plant is generating at full capacity, the delivery at the border point could reach a high of 1.5 million units,” the official said.

However, officials mentioned that the export has started at the end of the summer months and the generation will decrease over the coming months. “The volume of energy to be exported during the remaining part of October and November will depend largely on river inflows at Basochhu.”

The official from DGPC said that the export time is limited, and they are hopeful for additional revenues as long as the IEX-cleared prices remain above the export tariffs.

The officials said that Indian energy markets are ever-evolving and the opportunity to buy from and sell into the IEX is an excellent opportunity for bilateral and regional energy trade.

Bhutan will continue to be a buyer from the IEX during the lean winter months and Bhutan is now a seller in the IEX till Bhutan starts to import power from India.

During the 2023-2024 winter months, the import of energy is expected to reach a maximum of 850 MW with import duration stretching to five months.

“Even with the 118MW Nikachhu project coming online at the end of December 2023 and the 1,020 MW Punatsangchhu-II project coming online during 2024, the gap between domestic demand and generation will widen at the present project demand growth trajectory,” the official said.

Kuensel | Dechen Dolkar | September 30, 2023

The governments of Bhutan and India have tasked the Technical Coordination Committee (TCC) with reviewing and proposing a path forward for the 1,200MW Punatsangchhu Hydroelectric Project (Puna-I) dam.

Comprising eight members from the Inter-Government Group (IGG), the committee has now submitted its findings to both governments.

A mutual decision has been made to initiate geological investigation studies at the dam site and the right bank side of Puna-I.

Power sector officials have indicated that, within this month, the TCC will determine the extent of additional geotechnical investigations required at the dam site.

These investigations will then be carried out by the project management or a designated consultant.

The objective is to expedite these investigations as much as possible. They are crucial in establishing the foundation for necessary stabilisation measures to guarantee the dam’s technical safety.

Once the geological model is established, experts will engage in an extensive analysis to identify the type and scope of stabilisation measures needed.

One of Bhutan’s primary concerns revolves around the dam’s safety and stability, given the potential significant downstream impacts of any dam failure on lives and properties.

A power official emphasized the importance of constructing a technically-secure and cost-effective dam for the project’s success.

The construction of the barrage was prompted by multiple landslides on the right bank of the dam. The project experienced its initial slide in July 2013, followed by incidents in August 2016 and January 2019.

The Economic Times | September 29, 2023

Thimphu: Bhutan is gearing up to import electricity from India for an extended period of approximately five months from December this year to April next year, The Bhutan Live reported.

The anticipated increase in imports is caused due to the growing domestic demand for power, which has been steadily witnessing a rise over the past years.

Traditionally, the Druk Green Power Corporation (DGPC) imported electricity for a period of only three months. However, DGPC due to the rise in demand imported electricity for four months in 2022.

The DGPC from December 2022 to March 2023 imported a total of 367.17 million units of electricity, which incurred a cost of approximately Nu 1.75 billion, according to The Bhutan Live report.

A recent study carried out by the Department of Energy, Bhutan Power Corporation, Bhutan Power System Operator, and DGPC has found the necessity to import energy for five months during the 2023-2024 period.

This requirement for energy is attributed to an expected substantial rise in domestic demand, notably from high-voltage consumers coming online. A senior official from the power sector said that Bhutan anticipates importing over 1,500 million units of electricity during these five months.

The official further said, “Depending on the price of electricity on the Indian Energy Exchanges, the cost of import is estimated to exceed INR 6 billion.” Throughout this five-month, electricity imports are projected to peak at times, reaching more than 800 MW.

Bhutan’s hydropower projects experience seasonality, with maximum generation occurring during the monsoon months from May to October. Meanwhile, generation witnesses a decline during the dry winter months from November to April, according to The Bhutan Live report.

Presently, during the lean period, generation capacity remains around 400 to 450 MW, while peak demand has reached over 750 MW and still continues to be on the rise. Power officials have indicated that this trend of requiring to import power during the winter months is expected to continue for at least the next seven to eight years.

As the import rates are higher than the export rates, Bhutan can strategically plan to reduce the import bill by generating more energy. It can be achieved by releasing water from reserves during the lean period, The Bhutan Live reported.

During winter last year, Bhutan imported electricity at Nu 8.35 per unit. Power officials have said that the export tariffs are on the basis of long-term Power Purchase Agreements (PPAs) while imports are carried out through the Indian energy spot markets.

Bhutan anticipates a rise in generation capacity with the commissioning of the 118 MW Nikachhu project which is expected to get operational by the end of December 2023.

According to officials, the firm power capacity addition from the Nikachhu project during the winter months will be 23 MW, and the Punatsangchhu II project will contribute another 164 MW.

Even though the firm power generation from these projects will help reduce the import burden, Bhutan’s winter energy deficit will continue and necessitate supplementary imports, The Bhutan Live reported.

In order to address this ongoing challenge, Bhutan’s energy sector is making efforts to diversify its energy supply options, the report said. Notably, solar power is emerging as a cost-effective solution to supplement some of the winter deficits, with plans to install approximately 500 MW of solar generation capacity over the next few years. As Bhutan continues to face winter electricity shortfall, the country remains committed to exploring innovative solutions to ensure a steady and reliable power supply for people.

BBS | Kinzang Lhadon | September 29, 2023

Electricity import from India more than doubled this year compared to last year. According to figures from the Druk Green Power Corporation (DGPC) the electricity import bill rose from about INR 800 M in 2022 to almost INR 1.8bn this year. The DGPC say the increase in domestic demand and decreased river flow has impacted the country’s electricity generation capacity this year. Electricity import is expected to keep increasing in the coming seven to eight years.  

Bhutan’s electricity import is purchased from the Day Ahead Market of the Indian Energy Exchange. Per unit price of electricity is determined through a day ahead market double-sided auction from both buyers and sellers.

The country imported over 240 million units of electricity from January to March, last year, at an average import price was 3.32 Indian Rupees per unit.

Meanwhile, this year, over 360 million units of electricity were imported between January and April at an increased average price of 4.9 Indian Rupees per unit.

Further, with the DGPC seeing increasing domestic demand, the import figure is projected to exceed 800 megawatts from December this year to April next year. The DGPC told BBS that a considerable increase is expected on the domestic front with a number of high-voltage consumers coming online. The per unit price is also expected to increase to an average of six Indian Rupees during that period.

However, the DGPC say the expected commissioning of the 118-megawatt Nikachu Hydro Power Project in December this year, is expected to supplement the energy supply. There are also plans to set up about 500 megawatts of solar generation capacity in the coming years.

Meanwhile, the country witnessed a decrease in hydropower generation in the first half of the year compared to the same period in the previous years.

In a previous report by the BBS, DGPC said the decrease in power generation is primarily due to poor hydrology with no snowfall in the winter months and delayed monsoon rains. The country’s peak demand during winter months is crossing 750 megawatts while electricity generation in the same period is just between 400 to 450 megawatts.

Business Bhutan | Nidup Lhamo | September 28, 2023

Even as Bhutan witnesses a dip of 10.3 % in hydropower generation, between January and June 2023, compared to the same period last year, the Asian Development Bank (ADB) has said that greater hydropower generation in 2023 and 2024 will sustain growth. The Bank in a recent report says that growth in the construction industry, although substantial, is expected to decelerate, but projects such as the 1,020 megawatt Puna-2 hydropower plant and the smaller Nikachhu plant are near completion and that in 2024, the commissioning of these power plants will spur a 5.4% expansion in industrial growth. The Bank has also pointed out that a widening fiscal deficit and declining foreign exchange reserves will remain key concerns for the government.

On tourism, it says that the recovery in tourist arrivals has been sluggish due to the implementation of higher sustainable development fees. However, it is anticipated that the total number of tourist arrivals in 2023 will significantly surpass the figures from 2022, contributing positively to foreign reserves and the services sector. It should be noted, though, that the tourism sector is not expected to rebound to its 2019 levels. In contrast, the accommodation and food services segment is poised for a growth of 4.3%. Conversely, the wholesale and retail trade sector is projected to contract as import restrictions persist to alleviate pressure on foreign exchange reserves.

According to the Bank, the government will continue to be concerned about the expanding fiscal deficit and the decreasing foreign exchange reserves, which are critical issues. If the reserves persistently decline at the rate observed in 2022, it is highly likely that they will breach the constitutionally mandated requirement, which stipulates that they should be sufficient to cover 12 months’ worth of essential imports. Given Bhutan’s status as a small economy heavily reliant on imports, this could pose challenging dilemmas if the problem persists.

In the short term, the outlook is somewhat more positive, as the increased hydropower output is expected to provide support to Bhutan’s exports and financial situation. Additionally, the anticipated cessation of significant information technology imports by mid-2023 is projected to prevent a rapid deterioration in the reserve position.

Simultaneously, it remains imperative for Bhutan to continue implementing its medium-term strategy for managing debt, alongside adhering to the latest recommendations from the International Monetary Fund as outlined in Article IV. These measures encompass gradual fiscal consolidation, revenue mobilization, normalization of monetary policies that were accommodative in response to the COVID-19 pandemic, and addressing potential risks to banks, particularly those stemming from a potential increase in nonperforming loans when pandemic relief measures expire

In the agricultural sector, a growth rate of 3.2% is forecasted for 2023, followed by 2.6% in 2024. The government’s continued investment in agricultural infrastructure, value chain development, and measures to address human-wildlife conflicts are expected to contribute to this growth. The industrial sector is set to grow at a rate of 5.0%, primarily driven by increased electricity production in 2023, reaching levels comparable to 2020. This upturn is expected due to more favorable hydrological conditions and reduced maintenance-related downtime, factors that impeded generation in 2021 and 2022. However, changes in export policy are likely to hinder the mining and quarrying sub-sector. The services sector is projected to maintain growth in 2024, but the accommodation and food services sub-sector is expected to remain below its 2019 levels. This is partly attributed to the significant increase in the sustainable development fee imposed on international tourists, resulting in a lag in tourist arrivals. However, the government has now reduced the SDF to USD 100 per day.

As stated earlier, the Bank’s statement on hydropower juxtaposes current realty. Hydropower generation saw a dip of 10.3 % between January and June compared to the same period last year. The overall generation was recorded at 3,158 million units in the first six months of 2023 compared to 3,522.2 million units of electricity in the same period of last year.

In the first six months of 2020 and 2021, the hydropower generation was 3,770.95 million units and 3,450.41 million units respectively.  The decrease in power generation and increase in domestic consumption by over Nu 1.7 bn worth led to a fall in the export of electricity by over 30%.

The country generated revenue worth Nu 4.6 bn this year for six months while in the same period of last year, the country generated around Nu 6.7 bn by export of the power.  Meanwhile, during the six months, the power generation decrease is attributed mainly to the months of March, April, May, and June.

In the month of March, this year a total of 315.01 million units of power was generated while in the same period last year, 412.99 million units of power was generated.

Similarly in the month of April, a total of 464.96 million units of power was generated, while last year in April, the power generation was 672.09 million units.

In May this year, a total of 647.83 million units of power was generated while in the same period of last year, the power generation was 688.79 million units.

Additionally, in the months of summer, Bhutan is known to produce more power. The power generation in June this year was 1132.06 million units, which is lower by 207.15 million units. In the same period of last year, 1,339.21 million units was genertaed.

Meanwhile, the total revenue from the power both through export and domestic is Nu 8.2 (8217.08)  bn for the first six months of this year.

While export sales have decreased by almost 30%, domestic sales have increased by almost 101%.

Meanwhile, in 2023, Bhutan had to increase its electricity imports by approximately 50%. Bhutan bought 367 million units of electricity valued at Nu 1.73 bn during the first four months, from January to April. This import marked an additional 127 million units or Nu 927.27 million compared to the previous year.

In 2022, Bhutan procured 240 million units worth Nu 798 million for the same period, which was supplied to high-voltage consumers. The import approval for 2022 was sought from the Indian government for the initial three months, and the purchase was made through a competitive bidding process in the Day Ahead Market of the Indian Energy Exchange. The exchange prices are determined via a double-sided auction involving buyers and sellers, with competitive bidding occurring for every 15-minute time block, as explained by the DGPC MD.

The Bhutanese | Dorji Choden | September 23, 2023

In February this year it was announced that the 600 MW Kholongchu Hydro Energy Limited (KHEL) would start construction by around June 2023 or mid 2023.

This was supposed to happen after securing the funding from the Power Finance Corporation (PFC) and the Rural Electrification Corporation (REC) which are both Public Sector Undertakings of India and are like public banks for power projects.

At the time it was said that Druk Green Power Corporation (DGPC) is hopeful that it can reach financial closure with these two companies with the support of GoI.

However, cut to the end of September 2023 the project is not progressing as initially planned or expected due to difficulties in securing the necessary funding. The project has hit a roadblock for now as the primary challenge at this stage revolves around obtaining the required financing, both in terms of debt and equity.

An official from the DGPC explained, “We are actively working to secure the debt financing required to advance the Kholongchu project. Once we secure the necessary funding, we will resume construction promptly. Even with the present exodus of Bhutanese (staff), the Kholongchu project implementation can be managed through proper planning and management.”

Since its inception, the project has invested over Nu 4.626 billion in building essential infrastructure, such as roads, power facilities, and residential and non-residential structures needed for the project. Some of these infrastructure projects are still ongoing.

The official further stated, “The primary civil construction works for the head race tunnel have already been initiated, and letters of award for major civil dam and power house works have been issued. However, all these major construction efforts are currently on hold due to the absence of financial closure, particularly for debt financing.”

With an installed capacity of 600 MW, the Kholongchu project is expected to generate 2,568 million units (MU) annually. This substantial energy production will enhance domestic energy availability and facilitate surplus energy exports to India, thereby improving grid connectivity and stability. These exports are also anticipated to generate much-needed revenue in the form of Indian Rupees.

Investments of this scale in hydropower projects often stimulate the local economy and increase demand for various goods and services. The local communities living near the project are expected to benefit from employment opportunities, not only with the project, itself, but also with contractors, suppliers, and support services that will emerge to meet project demands.

The improved road access is expected to stimulate local economic development and boost local businesses providing essential goods and services. The project’s support for a shared residential unit development scheme is backed by the project, offering housing options for tenants.

Recognizing the reality of climate change, the project anticipates alterations in hydrological discharges in the river. This includes more intense monsoons and milder winters in the Himalayan region. The project’s design and energy generation plans take these changes into account but remain adaptable over time.

While the project initially had a workforce of 194, it now employs only 31 individuals, primarily focused on continuing infrastructure work and security. Additionally, 63 Indian laborers and 16 Bhutanese laborers are actively engaged in ongoing infrastructure construction projects.

The DGPC regained full ownership by repurchasing Joint Venture partner Satluj Jal Vidyut Nigam (SJVN) Limited’s shares in early 2023.

The DGPC and SJVN joint venture faced several issues from the start, but even as they were resolved some issues could not be resolved. One was the refusal to give 20% of the works on the dam to CDCL, another was over management control and the final issue was differences on raising financing.

The DGPC taking over the project will also give it full flexibility in terms of the management style and project implementation and also the technology to be used.

The aim is to finish the project within 5 to 6 years from the start of construction.

Kuensel | Yangyel Lhaden | September 23, 2023

Low renewable energy share in total energy consumption

To increase the share of renewable energy (RE)  in the total energy mix— individual contribution of energy from various sources, the Department of Energy (DoE) is set to initiate 500 megawatts (MW) of RE projects across the country in the next five years.

This in light of an expected rise in energy demand, projected to peak more than  25,270.giga-watt per hour (GWh) in 2030, up from the current 5,000 GWh, last year.

How would 500 MW add to the energy demand?

Electricity today makes up only 37.6 percent of total energy consumption—electricity and thermal— while energy from alternative renewables such as solar and wind remained below one percent of total energy consumption, according to Bhutan Energy Data Directory (BEDD) 2022.

In 2022, the country consumed 793,363 tons of oil equivalent (TOE) energy. With one GWh equivalent to 85.98 TOE, 500 MW has the potential to contributeabout 53,000 TOE energy in a year  to the total energy demand.

TOE is a unit used to compare different energy sources based on their energy content.

The country has a potential to harness 12-gigawatt solar energy and 760 MW wind energy and has an installed capacity of 2,335MW, which is 7 percent of the country’s total hydropower potential.

Today, Rubesa Wangdue has a 600-kW (kilowatt) wind farm and a 180-kW solar farm. Aja Ney, Mongar, has an 80-kilowatt peak (kWp)  decentralised distribution generation powered by solar. There is also a 5 kWp solar plant in Mendrelthang, Lunana and a 17.3-megawatt peak  solar farm is being installed in Sephu.

However, the country’s energy supply still leans heavily on thermal sources like biomass, petroleum, coal and their derivatives.

Thermal energy sources like biomass which mainly consist of fuel wood for cooking and heating, petroleum, coal, and their derivatives accounted for a substantial 62.4 percent of total energy consumption last year.

“The use of thermal energy is more prevalent than the use of electricity because thermal energy is employed in all sectors, including buildings, transportation, and industry,” a DoE official said. “ Compared with 2014, overall energy consumption has increased in 2022 due to population growth, increased commercial activities, transportation and industrial expansion.”

Energy consumption increased from 650,220 TOE in 2014 to 752,441 TOE in 2022.

However, the energy data report highlighted a positive trend of reduced energy consumption in both the building and transport sectors compared its 2015 report, particularly noting the contribution of alternative renewable energy sources.

The comparison of energy consumption data between 2014 and 2022 for petroleum, coal and derivatives, and biomass shows a shift in the energy mix.

The building sector’s energy consumption dropped by over half last year, amounting to 154,176 TOE, compared to 2015. Additionally, the building sector’s biomass consumption was markedly lower, standing at 97,750 TOE in contrast to the 234,369 TOE recorded in 2014.

“While it is challenging to replace fossil fuels which are extensively used in sectors like building, transport, and industry, many initiatives are emerging to increase the adoption of renewable energy,” a DoE official said.

Moreover, since households currently benefit from a very low electricity tariff of Nu 2.66, with an additional 100 units provided free for rural households, other RE projects become comparatively expensive for households to adopt, the official said. “ This results in a low share of alternative renewable energy generation.”

What makes the energy mix

Within the energy mix, electricity constituted the largest portion of the total energy consumption, comprising 37.6 percent although thermal energy constituted the highest share in total energy consumption last year,followed by biomass at 25.2 percent, equivalent to 199,955.8 TOE, and coal and its derivatives at 19.6 percent totalling 155,699.5 TOE. Petroleum products represented 17.6 percent with 139,589.2 TOE, while electricity from alternative renewables such as solar and wind remained below one percent, according to BEDD 2022.

Comparing these figures to the 2015 energy data, in 2014, biomass dominated the energy mix, accounting for 234,369 TOE or 36 percent of total energy consumption while electricity contributed 28 percent or 182,092 TOE to the total energy consumption.

To increase the share of alternative energy in the total energy mix, the department is exploring various opportunities, including green hydrogen. They are also promoting the diversification of energy sources in the overall supply mix, which involves grid integration of other energy systems like solar, wind, and biomass, as well as the promotion of energy-efficient equipment for industries, among other initiatives.

“There are many initiatives that are coming up such as clean cooking project to reduce the use of liquefied petroleum gas and fuel wood and promotion of electric vehicles which is aimed to reduce dependence on fossil,” the DoE official said.