This document summarizes Bhutan's energy sector, including its goals and initiatives to achieve universal energy access, energy efficiency, and increased use of renewable energy as part of its commitments under SE4ALL. It outlines Bhutan's institutional arrangements and existing energy policies, then discusses the country's progress toward each of the three SE4ALL goals. Challenges are presented, such as a lack of legal frameworks and institutional capacity for renewable energy and energy efficiency. Investment opportunities are mentioned, primarily in ongoing studies and hydropower projects planned for implementation under public-private partnerships.

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!!!
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