Bhutan's country presentation at the Sustainable Energy for All investor forum

2. Overview
Institutional Arrangement of Energy Sector
Energy Access
Renewable Energy
Energy Efficiency
SE4ALL Initiatives & Findings of RA/GA report
Challenges

3. Institutional Arrangements
Ministry of Economic Affairs is the lead agency for Energy with
Five Departments to overlook the energy sector: DRE, DoHPS,
DHMS, DOT and DGM
Two Power Companies- DGPC and BPC
Independent Regulator- BEA
Existing Energy Related Policies:
Electricity Act of Bhutan, 2001
Economic Development Policy of the Kingdom of Bhutan, 2010
Sustainable Hydropower Development Policy 2008
Alternative Renewable Energy Policy 2013
Foreign Direct Investment Policy, 2010

4. Goal 1: Universal Energy Access
• Total Energy Consumption in Bhutan = 326,687 MTOE (Metric Tons of
Oil Equivalent)- Bhutan Energy Efficiency Baseline Study 2012
• Electrical Energy Consumption – 139,315 MTOE (1620 GWh), 57.4%
• Thermal Energy Consumption – 187,372 MTOE ( fossil fuels and biomass)
• Industry consumes 33.9% of the total energy of the country
• 99% hydropower driven and diversification is essential to ensure security of
supply
98% of rural populace has access to clean and modern energy

5. Goal 2: Energy Efficiency
No legal frameworks to address Energy Efficiency (EE)
Continuous awareness program on EE conducted
Baseline Study for Energy Efficiency conducted under UNDP funding
EE Study in Building Sector conducted and Building Energy Efficiency
Code drafted under UNDP funding
Energy Efficiency and Conservation Policy to be formulated under
Energy Plus (Norwegian funding)
Standards and Labeling for appliances to be developed under Energy
Plus
Demand Side Management through efficient lighting systems to be
implemented under Energy Plus (Norwegian Funding)

6. Goal 3 : Renewable Energy
 Hydropower
• Techno-economically feasible (>10MW) = 23,760 MW (≈100,000
GWh)
• Total installed capacity – 1480 MW
• 3,066 MW under construction
Accelerated Hydropower Development
• 10, 000 MW development plan by 2020

7. 11th
FYP (2013-18) Hydropower Projects
Pipingchhu
(55 MW)
Mochhu-I
(658 MW)
Nikachhu
(118 MW)
Dangchhu
(120 MW)
Amochhu-I
(747 MW)
Amochhu-II
(500 MW)
Dagachhu-II
(153 MW)
Pachhu
(77 MW)
Samchhu
(71 MW)
Manas RS (I&II)
(2800 MW)
Jomori
(73 MW)
Gamri I & II
(81+85 MW)
Kholongchhu
(130 MW)
Chamkhar Intg.
(1397+853MW)
Shongarchhu
(107 MW)
Rotpashong
(1230 MW)
Nyera Amari I & II
(141+332 MW)Dagachhu
(126 MW)

8. Jun 19, 2014 8
SN Project & location Installed Capacity
(MW)/Generation (MU)
Implementation
Mode
Status
DHPS
1 Chamkharchhu Integrated,
zhemgang
1397+853, 5508 + 3360 IPP/PPP PFR under preparation
2 Dangchhu, Wangdue 120, 473 IPP/PPP PFR under preparation
3 Dagachhu-II, Dagana 135,645 IPP/PPP PFR to be prepared
4 Shongarchhu, Mongar 107, 418 IPP/PPP PFR to be prepared
5 Manas Reservoir I & II, zhemgang 1800+1000, 10,000+5000 IG PFR to be prepared
6 Jhomori, Sjongkhar 73, 321 IPP/PPP PFR to be prepared
7
Amochhu-I & II, Haa 747+500, 3317+2210
Reconnaissance study to be undertaken
Mochhu-I, Gasa 658, 2630
Kholongchhu, Yangtse 130, 583
Samchhu, Haa 71, 277
Pachhu, chukha 77, 300
Pipingchhu, Chukha 55,216
DGPC
1 Dagachhu, Dagana 126, 515 PPP Commission by april’14
2 Nikachhu, Trongsa 118,500 PPP DPR by sept’13
3 Rotpashong, Lhuentse & Mongar 1230, 5265 PPP DPR to be prepared
4 Nyera amari, SJongkhar &
Trashigang
141+332, 556+1320 PPP PFR under preparation
5 Gamri Integrated, Trashigang 81+85, 383+783 PPP PFR to be prepared
11th
FYP (2013-18) Projects

9. Hydropower Development (10,000 MW) by 2020
Amochhu
(540 MW)
Wangchhu
(570 MW)
Sankosh
(2500)
Sankosh Lift
(60 MW)
Bunakha
(180 MW)
Puna-I
(1200 MW)
Puna-II
(1020 MW)
Mangdechhu
(720 MW)
Chamkhar
(770 MW)
Kuri-Gongri
(2640 MW)
Kholongchhu
(600 MW)

10. Goal 3 : Renewable Energy
Alternative Renewable Energy
• Minimum Target of 20 MW by 2025 excluding SHP
 Small hydropower ( upto 25MW)
• potential to be accessed
• total installed capacity – 8MW
 Biomass/Biogas
• Constitutional mandate to maintain 60% under forest cover
• Source of primary energy (91% met by biomass)
• Over 16,000 biogas plants techno-economically feasible
• 2800 biogas plants under implementation
• 1200 biogas plants completed and operational

11. Goal 3: Renewable Energy
• 14,000 improved biomass stoves under implementation (UNDP
Funding)
• 170 improved biomass stoves commissioned
 Wind Energy
• 500 – 600 kW pilot wind power project under implementation
(ADB/RGoB funding)
 Solar Energy
• Over 0.25 MW installed (stand alone systems)
• Resource potential of 4.2 to 6 kWh/m2
/day
• 8 Solar Water Heating Systems (500-1000L) piloted
• Plan to install MW size grid interactive solar power plant

12. Improved biomass stoves 500 Lpd solar heating system
Biogas dome Biogas slurry

13.  Fossil Fuels
• Coal reserve of 1.96 MT
• No known reserve => Import dependent!.
• Imported over 86,000 KL of diesel, 24,000 KL of petrol and 6,000
KL of kerosene in 2010.
• 100% of fossil fuel imported (stability of supply and price volatility
- more stress on the economy)
• Renewable Energy’s role critical for energy security and fossil fuel
(import) substitution
Other Energy Sources

14. SE4 ALL Initiatives
Bhutan joined SE4ALL in 2012 after the Rio Brazil Summit.
Energy Plus Cooperation Partnership with funding from
Norwegian Government
Rapid Assessment and Gap Analysis study with funding from
ADB (2012)
Findings from Rapid Assessment & Gap Analysis Study:
Energy Access
No Clear policy targets to address reduced use of fuel wood for
cooking and heating
Require significant capacity building of public and private
agencies to develop Bhutan’s hydropower potential

15. Findings from RA/GA Study
Renewable Energy Systems:
Develop RE roadmap for each of the RE technologies and
appropriate feed-in tariff system to incentivize private sector
participation in the development of RE resources
DRE needs to strengthen their capacity and gain experience in
promoting and developing RE technologies
Strengthening of the capacity of private sector to implement RE
systems and financial institutions to finance RE systems
No specific budget prepared for developing RE
Energy Efficiency:
No detailed studies of the potential of EE in the country have
been undertaken nor EE specific programs developed

16. Findings from RA/GA Study
No Energy Efficiency and Conservation Policy in place
No specific institution to coordinate EE activities in the country
Private Sector to play an important role in implementing EE
Financing requirement of EE has not been estimated due to the
absence of policy in place

17. Challenges
Renewable Energy :
No legal framewok
Technology very expensive compared to large hydropower
Lack of Institutional capacity
Lack of private sector capacity
Limited access to funds
Difficult geographical terrains
Providing affordable and reliable access to Renewable Energy
Energy Efficiency:
No Energy Efficiency & Conservation Policy
Poor private sector participation.

18. Investment Opportunities
Preparatory studies are being undertaken for promotion of
RE and EE under Energy Plus (Norwegian Funding)
Investment opportunities will open up after the completion
of Preparatory studies
Hydropower:
Need funding for Ratposhong Project (1230 MW in
Eastern Bhutan) to execute DPR and later investment
under Public Private Partnership.
1-2 projects to be implemented under PPP/IPP in the 11th
FYP.

19. THANK YOU!!!
For further information visit www.moea.gov.bt