News

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.

The Economic Times, India | Saurav Anand | March 13, 2024

In a significant move towards promoting energy efficiency and conservation, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a Memorandum of Understanding (MoU) between India and Bhutan.

This landmark agreement, signed between the Bureau of Energy Efficiency of India’s Ministry of Power and Bhutan’s Department of Energy, Ministry of Energy and Natural Resources, aims to foster bilateral cooperation in the field of energy efficiency.

Under the MoU, India will extend its support to Bhutan in enhancing energy efficiency within the household sector, notably through the promotion of India’s star labeling program spearheaded by the Bureau of Energy Efficiency.

Additionally, India will share its expertise in the development of building codes tailored to Bhutan’s climate conditions and contribute to the creation of a pool of energy professionals in Bhutan through the training of energy auditors.

The initiative also focuses on training retailers to disseminate energy-efficient products among consumers, emphasizing the savings from using star-rated appliances. This cooperation is expected to support Bhutan in the development and implementation of Standards and Labelling schemes for energy-intensive appliances, addressing the rising demand for electrical energy through the preference for high-efficiency appliances.

The MoU has been prepared by the ministry of power in consultation with ministry of external affairs (MEA) and department for promotion of industry and internal Trade (DPIIT). The MoU will enable exchange of Information, data and technical experts related to energy efficiency and energy conservation between India and Bhutan. It will help Bhutan to ensure availability of energy efficient products in the market. The MoU will analyze energy efficiency policies and cooperation in the field of energy efficiency research and technology deployment.

Kuensel | Dechen Dolkar | March 11, 2024

In just over a month since its commissioning, the  118MW Nikachhu Hydropower Project in Trongsa has generated revenue of approximately Nu 56 million. Nikachhu commenced its electricity exports to India on January 25th.

Despite facing numerous challenges, particularly from the Covid-19 pandemic and geological issues, the project managed to be commissioned on time. The project has produced around 17.738 million units of electricity as of the first week of March.

According to officials from Tangsibji Hydro Energy Limited, the project has distributed 4 million units of electricity for domestic consumption at the tariff of Nu 3.89/KWh as of March 8. Around 491 million units are expected to be generated annually, earning approximately Nu 1.6 billion from the project.

The project official mentioned that the Nikachhu project is also discharging water from the dam to the Mangdue project, thereby benefiting the latter for more generations. Currently, the project employs 103 individuals, with 39 employees retained for the operation and maintenance of the project.

The official further stated that the project is preparing for closure, and the remaining employees will be redeployed to other new projects and the Druk Green Power Corporation (DGPC) plant.

The project is 100 percent subsidiary of DGPC.

Business Bhutan | Sherab Dorji | March 11, 2024

Partnership sought through issuance of bonds

The Druk Green Power Corporation (DGPC) is currently exploring partnership with Bhutanese living abroad through issuance of Renewable Energy Bond to mobilize funds for both equity and debt financing running into billions of Ngultrums while planning for the development of hydropower and solar resources.

“To take forward some of the hydro and solar projects, strategic partnerships is considered as a viable option to raise funds,” an official from DGPC said.

On why the bond is being issued only to Bhutanese living abroad, the official said that the Renewable Energy Bond is aimed at raising funds in convertible currency as the investments in hydropower and solar energy mostly tend to be in Indian Rupees and in hard currency.

“Domestic bonds would be useful to raise Ngultrum financing only,” the official said, adding that, in future domestic bonds could also be considered if required.

The official shared that there is a lot of interest generated amongst Bhutanese living abroad to avail this opportunity to invest in the Renewable Energy Bond.

By getting this unique opportunity to fund Bhutan’s renewable energy sector, it is felt that the Bhutanese living abroad will feel a sense of participation and contributing to nation building and their future.

“It will be started small but if successful, similar opportunities will be provided in future,” the official said.

Speaking about the country importing power from India to meet the deficit in the winter months due to very low river discharges, he said that the availability of power from the Indian energy exchanges is not very dependable as India’s own demand is increasing with the tremendous economic growth that India is experiencing.

In addition, the official said that even the rates for power import vary in 15-minutes blocks on a daily basis. “Therefore, there is not only an uncertainty in terms of availability but also in terms of variation in tariffs on a daily basis,” the official said.

To all this hassles and to meet Bhutan’s current demand for electricity and prepare for future growth prospects, the DGPC official said that huge investments are being planned in the energy sector especially in developing the immense hydropower resources that are further planned to be supplemented by some solar power.

The official also shared that the variation in river discharges are also getting more acute with climate change and global warming with the monsoons getting erratic and with the Himalayas having not seen any regular snowfall for a number of years.

To this, the official said that hydro solar hybrids are seen as a plausible solution to the high variation in hydropower generation due to the season nature of river discharges.

Similarly, to take forward the development of hydro resources, the construction of a number of small hydropower projects has been started, according to the corporation.

“Investments in small hydro projects will be continued as this provides an excellent opportunity for the power sector to develop its human resources and to help grow capabilities of Bhutanese contractors,” the official said.

The official added that the corporation has also planned to start the construction of a few large hydropower projects within 2024-2025.

For instance, in harnessing the solar resources, the construction of the 17 MW utility solar farms has been started at Sephu in Wangduephodrang. There are further plans for developing rooftop as well as more utility scale solar power considering the excellent weather conditions in the non-monsoon months.

The official said that even the guidelines in terms of coupon rates and tenures are being worked out in consultation with the relevant Government entities.

“Hydropower and now with solar is the cornerstone of Bhutan’s economy,” the official expressed. The official further said that without access to reliable and affordable electricity supply, the aspirations for Bhutan’s socio-economic development would be difficult to achieve.

Six DGPC female employees and four from BPC along with women from South Asian countries attended the capstone seminar and graduation ceremony for the WePOWER-SAR100 women from March 4 to 8, 2024. The seminar was held at the regional knowledge hub at Yunus Centre, AIT, Thailand.

WePOWER-SAR100 is a technical training and leadership development program for women in the power and energy sector in the South Asian Region (SAR). The program is part of the South Asia Regional Infrastructure Connectivity (SARIC) initiative’s Large Systems Training Program spearheaded by the World Bank, funded by the Australian Department of Foreign Affairs and Trade (DFAT) through Palladium International. Participants were selected competitively from Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.

The WePOWER-SAR100 program emerged from discussions during the WePOWER-SAR100 regional meeting in Bangkok in December 2022, hosted by the World Bank. The WePOWER-SAR100 program team works with national training partners such as BPC, Bangladesh Power Management Institute, National Power Training Institute of India, State Electric Company of Maldives, Nepal Electricity Authority, WAPDA Staff College of Pakistan, and Ceylon Electricity Board of Sri Lanka.

The eight-month programme aims to equip mid-career women engineering professionals for leadership roles in the emerging energy integration and energy space. The curriculum is designed to build the technical capacity of participants to manage operations of
regionally integrated power systems with high renewable energy penetration, understand the role of power markets in regional integration and scaling up renewable energy and aid gender awareness and mitigate unconscious bias. Successful participants receive a 15-credit equivalent professional credential from the Energy Development: Systems, Management, and Technology programme at AIT.

Kuensel | Chencho Dema | February 24, 2024

Wangdue—In honour of the brave individuals who sacrificed their lives during the construction of the Punatsangchhu-II Hydroelectric Project Authority (PHPA-II), Rajesh Kumar Chandel, the managing director, opened his remarks at the reservoir filling ceremony on February 21, coinciding with the King’s birth anniversary.

The successful completion of the reservoir filling for the 1,020 MW Punatsangchhu-II Hydroelectric Project Authority (PHPA-II) marks a significant milestone, bringing the project closer to its commissioning phase. 

Over five months, the Punatshangchu will gradually fill the reservoir, symbolising the project’s advancement toward completion.

Once the dam is fully impounded, it will store approximately 7 million cubic metres of water for power generation, a noteworthy achievement for the nation.

Rajesh Kumar Chandel expressed gratitude, stating, “We have come this far due to the dedication of numerous unsung heroes who have labored tirelessly over the past decade. Many lives have been lost, and countless workers have been injured or disabled during the construction. Today, we honor their contributions to this monumental project.”

Despite the project’s initial commissioning target of 2017, unforeseen geological challenges, flash floods, and the Covid-19 pandemic led to schedule delays and cost overruns, including the discovery of a major shear zone at the dam foundation.

Chandel highlighted the collapse of the downstream surge gallery (DSG) as a significant challenge that once threatened the project’s feasibility.

However, with appropriate engineering solutions, the project has persevered toward completion.

Various dignitaries including Prime Minister Tshering Tobgay, Minister for Energy and Natural Resources Gyem Tshering, Minister of Health Tandin Wangchuk, Members of Parliament, and Ambassador of India to Bhutan Sudhakar Dalela attended the event.

The PHPA-II is a joint project between the governments of Bhutan and India. The foundation stone was laid by the then Prime Minister of Bhutan and the External Affairs Minister of India in 2010.

Ambassador Sudhakar Dalela expressed confidence in meeting project timelines and emphasised the longstanding cooperation between Bhutan and India in the hydropower sector, which has significantly contributed to Bhutan’s economic growth.

As of January 31, the project has achieved an overall physical progress of 96.83 percent, with major components nearing completion.

The project aims to commission all six generating units by the end of 2024, with a focus on completing major civil works by June 2024.

Chandel expressed confidence in surpassing the scheduled commissioning dates for the first two units, emphasising the team’s dedication to the mission.

He affirmed: “I assure everyone present that the project will be ready to serve the nation in a matter of months. Our team is united in this mission.”

The project has incurred expenses of Nu 83 billion (B) to date.