Transcript WATER RESOURCES IN BHUTAN

BIMSTEC WORKSHOP ON
“SHARING OF EXPERIENCES IN
DEVELOPING HYDRO PROJECTS”
30th & 31st October 2006, New Delhi
Country Presentation
Bhutan
Tashi Dorjee
Department of Energy, MTI
&
Kencho Dorji
Chukha Hydropower Corporation Ltd.
Outline of the Presentation
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Bhutan – Salient Features
Institutional Set-up for Energy Sector
Hydropower Potential
Energy Sources & Status of Hydropower
Development
Economic Impact of Hydropower
Future Plans for Development of Hydropower
Planning and Policy interventions to enhance the
role of hydropower
Opportunities & Challenges for Hydropower
Development
Electricity Act 2001
Role of Private Sector
Conclusions
Bhutan – Salient Features
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Located in the eastern part of the Himalayas
Area – 38,394 Sq. Km
Population – 672,425 (69.1% living in rural areas)
Altitude range from 100 – above 7500 m above mean sea
level
• 170 Km north south distance and 340 km east west
distance
• 72% under vegetation cover
• Climate – Wet summer monsoon and cool dry winters
• GDP per capita, 2004: 843 US$
• GDP growth, 2004 at 2000 prices: 7.5%
• Overall National electrification coverage: ~50% (~60% of
rural areas still non-electrified)
Institutional Set-Up for
Energy Sector
Under Ministry of Trade & Industry
• Electricity & Renewable Energy Policy,
Planning & Regulations
• Utility functions (Generation, transmission
& Distribution companies) – CHPCL,
KHPCL, BHPCL, BPCL
• Project Authority – Tala
• Import of Fossil Fuels (Trade)
 Under Ministry of Agriculture
• Fire-wood, food and animal draught power
Energy Sector Organization
Ministry of Trade & Industry
Department of Energy
(Policy, Plan, Regulation)
Department of Trade
Fossil Fuels
Project Authority like
Tala
Power Corporations like
BPCL, CHPCL, KHPCL, BHPCL,
Proposed DHPC
Hydropower Potential and Status (as of October 2006)
Hydro Power – Backbone Of Bhutanese Economy
Hydropower potential
30,000 MW
Technically feasible
23,760 MW
Current installed capacity 468 MW(1.5%)
Capacity by December 2006 1488 MW(5%)
Three Main Regional Basins:
Basin I : 4819 MW, 20874 GWh
Basin II : 8182 MW, 25842 GWh
Basin III : 10759 MW, 52531 GWh
List of Potential Hydropower Projects identified in PSMP 2004
River basin
Amochhu
Nos. of
Projects
Identified
Total
Installed
Power
Potential
(MW)
Total
Mean
Annual
Energy
(GWh)
Plant
Cap./ Load
factor
Remarks on the study
status
6
2060
9656
0.44-0.62
Desktop (5) PFR (1)
Wangchhu
10
2740
11139
0.29-0.63
Desktop (4) Recon (2) DPR (2) Under
constr. (1) Op. (1)
Total for Basin I
16
4800
20795
Punatsangchhu
19
8099
25495
0.19-0.72
Desktop (9) Recon. (3) PFR (1) FR (1)
FR pro (1) DPR (2) Op (2)
Total for Basin II
19
8099
25495
Mangdechhu
17
3889
18322
0.50-0.57
Desktop (10) Recon (4) FR (3)
Drangmechhu
20
6692
33422
0.45-0.63
Desktop (13) Recon (4) FR (2) Op (1)
Small rivers
4
280
1213
0.47-0.51
Desktop (4)
Total for Basin III
41
10861
52957
Total for all
Basins:
76
23,760
99,247
0.48 (Avg.)
Developed
4 sites
468
2540
0.61
Under Dev.
1 site
1020
4865
0.54
By end 2006
5 sites
1488
7405
0.58
<2%
~6%
Sources of Energy & Status of
Hydropower Development
• Primary energy – Bio-mass (1.2 million m3 per
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annum consumption, 1.8 m3 per capita) for
lighting, cooking and heating
Import during 2005 of Kerosene (12545 kl), Diesel
(51,440 kl), Petrol (13,775 kl), LPG (4472 MT) –
increasing demand !
Solar PV installed – 343 kW
Diesel Power installed capacity – 16.404 MW
• Hydroelectric installed capacity – 468.068 MW,
2576 GWh (1.5% of total potential) without Tala
Status of Hydropower
Development
Sl. #
Hydro Plant
MW/GWh
Remarks
1.0
Chukha
336/1860
1986-88
2.0
Kurichhu
60/400
2001
3.0
Basochhu I
24/106
2001
4.0
Basochhu II
40/186
2004
5.0
Tala
1020/4866
Sept. 2006-Dec.
2006
6.0
Mini/Micro
8.068/24
1967-2005
Total:
1488.068/7442 ~5% of total
Impact of Hydropower on the National Economy
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Key to achieving economic self reliance
– Prior to harnessing of hydropower, Bhutanese economy almost entirely dependent
on foreign aid
– In the 9th Plan (2002-2007) about 46% dependent on external aid.
– Revenue from sale of electricity provided ~45% of national revenue (>60% after
full commissioning of Tala).
– Electricity Sector contribution to GDP: ~12% (expected to be increased to ~30%
once Tala in on line)
– ~75% of hydropower generation exported to India.
– Earnings from this sector ploughed back into the social sector.
– Large social spin-off benefits
Sustainable development of natural renewable resources and contribute to mitigating
GHG emissions
Affordability
– Domestic tariff kept low to stimulate economic growth.
– Encouraged development of large industries that consume ~70% of total electricity
consumption within the country (peak internal demand ~120 MW)
– Rural electrification given high priority (100% electrification by 2020).
Environmentally benign
– All major rivers in Bhutan flow through deep valleys.
– No settlements effected.
– Run of the river projects
– Catchment well conserved (~72% forest coverage)
Future Plan for Hydropower
Development
• 20 Years’ Power System Master Plan
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(2003-2022) updated
Six Projects (4484 MW, 21085 GWh) shortlisted for development during 2007-2024,
short-listing by Multi Criteria Analysis
(70% Techno-economic, 30% Socioenvironmental).
Total investment required: US$ 3,660.8
million (About US$ 200 million per annum
requirement for 244 MW per annum
capacity addition
Average development cost estimate >
0.835 million US$ per MW
Planning and Policy interventions to
enhance the role of hydropower
• Vision 2020
– 3000 MW Generation Capacity addition by 2017 ( 4484
MW addition by 2025 )
– Electricity for all by 2020
 20 Years’ Power System Master Plan (2003-2022) updated
 RE Master Plan – Integrated Dzongkhag wise electrification
Hydropower projects in pipeline for
development in the next 20 years
Sl. #
Project
MW, GWh/a
Timeline
1.0
Punatsangchhu-I
1095, 5377
2007-2012
2.0
Mangdechhu
672, 2910
2009-2014
3.0
Punatsangchhu-II
992, 4667
2011-2016
4.0
Chamkharchhu-I
672, 3208
2014-2020
5.0
Chamkharchhu-II
568, 2714
2018-2023
6.0
Kholongchhu
485, 2209
2020-2024
Total:
4484, 21085
Hydro Development
Opportunities & Challenges
• Renewable, Clean form of
• Resources constraints
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Energy
CDM & Substitution to
fossil fuels/reduction in
GHG emission
Export /Market demand
in India and South Asia
(peaking energy)
Benign environment
(political, social &
physical/technoeconomic).
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(capital intensive & skills
& technology !)
Conservative Environment
laws !
Risks (long gestation,
weather, geology,
seismology)
Market (pricing,
competition)
Transport cost (land
locked !)
• Electricity Act 2001
- Provides the legal framework for regulation
of electricity industry in the Kingdom
- Provides mechanisms for licensing and
regulating the operations of Power companies
- Defines the roles and responsibilities of
suppliers and protect the interests of the
general public
Private Sector Participation
• Present Scenario
- Private sector in general is in its infancy (developing)
- Involved in small hydro generation, transmission (JV
with Indian firms), distribution system (RE works)
- No capacity & resources for large hydro projects
development
- IPP, Public-Private model for hydropower development
not existing
• Power sector not in FDI Policy
• IPP Policy guidelines to be prepared soon
• Electricity Act 2001 - No license required for hydro
capacity upto 500 kW
Private Sector Participation
• Private participation: Avoided Cost and Additionality.
ADDITIONALITY: Is the benefit to the consumers and to the
economy of having the energy services available NOW rather
than having to wait until the government can provide the
energy services much later.
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Concessions to meet energy shortage.
Not for increasing revenue from electricity sales.
In Bhutan’s context, mainly for enhancing revenue.
Public private partnership to enhance investor
confidence.
IPPs in small plants but subsidy maybe necessary.
Some conclusions
• Hydropower resource has brought about immense development
benefits all geared towards achieving economic self-reliance and
overall socio-economic development of the country.
• In the Bhutanese context, large hydropower project has the benefit
of economy of scale, as well as it provides large spin-off social
benefits such as road access, rural electrification, employment
opportunities, hospital, school etc and thus fulfils the national
strategy of regional balanced development.
• Hydro power projects in Bhutan are mainly run of the river
schemes and have had minimal environmental impact. There have
been minimum and/or no displacement and rehabilitation of people
living in the Project area.
THANK YOU
FOR
YOUR KIND ATTENTION