international conference on saarc@25 co-operation in the hydropower sector between bhutan and india...
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International Conference on SAARC@25
Co-operation in the Hydropower Sector between Bhutan and India
New Delhi, 16-17th September 2010
Rinzin DorjiSE, Chhukha HydroPower Plant, Druk Green
Druk Green Power Corporation Limited
A Royal Government of Bhutan Undertaking
Presentation Outline
Energy Sector Organization Structure Role of Druk Green Power Corporation Limited Current Developed Hydropower Potential Potential for Hydropower Development Impact of Hydropower on Bhutan’s Socio-
Economic Development Hydropower Projects under Implementation &
Plans (10,000 MW by 2010 through GOI Assistance)
Opportunities of Doing Business in Bhutan’s Hydropower Sector
Indo-Bhutan Hydro Power Opportunities
INDO–BHUTAN HYDRO POWER OPPORTUNITIES
oArea – 38,394 sq kmoPopulation ~ 650,000oAltitude range from 100 – above 7500 m above mean sea leveloForest cover - 72%
Dept of EnergyPlanning, policy, coordination, specialist functions
Bhutan Electricity AuthorityRegulatory functions
Bhutan Power Corporation
-Tala Hydropower Plant-Chhukha Hydropower Plant-Kurichhu Hydropower Plant-Basochhu Hydropower Plant
MINISTRY OF ECONOMIC AFFAIRS
UNDER CONSTRUCTION
Dept of Trade
Fossil fuelsDept of
Industries
Druk Holding & Investments
Puna-I HP AuthorityPuna-II/Mangdechhu
DrukGreen
Dagachhu Hydro Power Corporation
MINISTRY OF
FINANCE
Other Shareholders-Tata Power Company-NPPF
ORGANIZATIONAL STRUCTURE
PPP Projects (Nikachhu,Gamri, and others )
As per the Royal Government of Bhutan’s “Sustainable Hydropower Development Policy – 2008” :
“DGPC is responsible for managing all hydropower plants fully owned by the Royal Government. It will also develop projects on its own or through joint ventures on behalf of the Royal Government as may be directed. Projects that are funded through bilateral assistance shall continue to be managed and supervised by the Ministry of Economic Affairs through formation of project authorities. Such fully Government owned generating plants shall be handed over to DGPC when the Project Authority is dissolved”.
ROLE OF DRUK GREEN POWER CORPORATION LIMITED
MISSIONSMission 1 : Effectively and efficiently manage
hydropower plants, and maximize returnsMission 2 : Take a lead role in accelerating
hydropower development in the Kingdom by developing new hydropower projects independently, through joint venture or any other arrangement with domestic and international partners
Mission 3 : Provide energy security for domestic consumption, fuel economic growth, and also explore forms of renewable energy other than hydropower
Mission 4 : Build capacity in hydropower development and management
Mission 5 : Be a responsible, proactive and progressive company with highly motivated professionals
ROLE OF DRUK GREEN POWER CORPORATION LIMITED
POTENTIAL FOR HYDROPOWER DEVELOPMENT
Hydropower – the ONLY energy resource Bhutan has
No COAL No OIL Other renewable energy
resources (wind and solar) – costs still prohibitive
Highest per capita consumers of firewood
POTENTIAL FOR HYDROPOWER DEVELOPMENT
The steep and rugged Himalayan mountains and fast running rivers lend themselves to huge hydropower potential 30,000 MW potential 23,760 MW (76 sites of >10
MW) techno-economically viable for development
Sl.No. River-basins Area (km2)
Schemes Potential (MW)
Energy (GWh)
1 Amochhu (Basin I) 2,400 6 2,060 9,6562 Wangchhu (Basin I) 4,689 10 2,740 11,1393 Punatsangchhu (Basin II) 10,355 19 8,099 25,4954 Mangdechhu/Manas-West (Basin III) 7,392 17 3,889 18,3225 Drangmechhu/Manas-East (Basin III) 9,207 20 6,692 33,4226 Jaldhaka, Mau, Nyeraamari, Dhansiri 2,750 4 280 1,2137 Others 1,601
Total 38,394 76 23,760 99,247
POTENTIAL FOR HYDROPOWER DEVELOPMENT
CURRENT DEVELOPED HYDROPOWER POTENTIAL
Developed Hydropower Potential
Installed hydropower capacity of 1,489 MW constitutes , 5% of total potential
Diesel generation – 17 MW
CURRENT DEVELOPED HYDROPOWER POTENTIAL
Over 98% of the installed hydropower capacity constructed through the assistance of the Government of India through grant and loan financing Implementation through an Inter-
Governmental Model with an Authority and a management team supported by numerous GOI agencies such as the CWC, CEA, WAPCOS, GSI, NHPC etc
Most of the transmission, sub-transmission, and distribution lines built through GOI assistance
Surplus power exported to India Benefits India’s energy sector Hydropower is the key sector driving the
socio-economic development of Bhutan
Energy Generation, Domestic Consumption and Export to India
PERFORMANCE OF THE GENERATING UTILITY
Bhutan Power System (2009)
India
IMPACT OF HYDROPOWER TO BHUTAN’S SOCIO-ECONOMIC DEVELOPMENT
IMPACT OF HYDROPOWER TO BHUTAN’S SOCIO-ECONOMIC DEVELOPMENT
Electricity sales (domestic and export) contributes to over 45% of the total internal revenues to the government, and a little over 20% of the GDP
79% of electricity was exported to India in 2009
Annual domestic demand growth rate ~ 18% Access to Electricity Urban 100% Rural 65% Industrial consumption 80% Per capita consumption : 2,100 units “Electricity for All” by 2013 (every
household)
HYDROPOWER PROJECTS UNDER CONSTRUCTION
Power PlantInstalled
Capacity (MW) Remarks1Punatshangchhu-I 1,200 GOI financing
Total 1,200
Dam Works of Punatshangchhu-I
Excavation of Main Access Tunnel to Power House
HYDROPOWER PROJECTS (Cleared for Construction)
Power PlantInstalled Capacity
(MW)1Punatshangchhu-II 990 2Mangdechhu 720
Total 1,710
View of Punatshangchhu-II
View of Mangdechhu Dam Site
OTHER HYDROPOWER DEVELOPMENT PROJECTS (UNDER 10,000 MW BY 2020 PLANS)
Power PlantInstalled
Capacity (MW) Remarks1Sunkosh Reservoir 4,060 DPR2 Kuri-Gongri 1,800 DPR3 Amochhu Reservoir 620 DPR4 Kholongchhu 486 DPR5 Chamkharchhu-I 670 DPR6 Wangchhu Reservoir 900 DPR7 Bunakha Reservoir 180 DPR
Total 8,716
Construction of all projects expected to be started within 1-3 years
OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR
Power PlantInstalled Capacity
(MW) Remarks1Punatshangchhu-I 1,200 Under Construction
2 Punatshangchhu-II 990 Construction by 20103 Mangdechhu 720 Construction by 20104 Sunkosh Reservoir 4,060 DPR5 Kuri-Gongri 1,800 DPR6 Amochhu Reservoir 620 DPR7 Kholongchhu 486 DPR8 Chamkharchhu-I 670 DPR9 Wangchhu Reservoir 900 DPR
10 Bunakha Reservoir 180 DPRTotal 11,626 -
Hydropower Projects under 10,000 MW by 2020 with Government of India Assistance
1Dagachhu 114 Under Construction2Augmentation of Tala FS3 Nikachhu 208 FS4 Begana 20 FS5 Druk Bindu 12 PFS6 Gamri 80 PFS7 Aiechhu 70 PFS
Total 504
OTHER HYDROPOWER PROJECTS OF ROYAL GOVERNMENT OF BHUTAN
Augmentation of Chhukha Plant
Dagachhu Surge Shaft Works
Agencies of the Government of India involved in Bhutan’s Hydropower Development & transmission systems
OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR
Major private sector companies involved in hydropower development & transmission systems
OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR
Augmentation of Chhukha Plant
Intention to try and develop every hydropower project under the Clean Development Mechanism (CDM) Difficult to meet CDM requirements
114 MW Dagachhu Hydroelectric Project First public private sector strategic
partnership in hydropower development First project of Bhutan to be registered with
the United Nations Framework Convention on Climate Change (UNFCCC) in 2010 A break through as the first CDM
hydropower project to be considered using cross border energy trade baselines
OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR
Over INR 600 billion expected to be invested in Bhutan’s hydropower development over the next ten years Huge opportunities for participation as
consultants, suppliers, and contractors in hydropower development, transmission systems, and CDM management
Investments into hydropower sector Government of India Public Sector Undertakings
(NHPC, SJVNL, THDC & NTPC) will be joint venture partners for some of the projects under the 10,000 MW by 2020 list
No plans for private sector investments (IPPs) into the hydropower sector although there is a huge interest from the Indian private sector to invest in Bhutan’s hydropower development
OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR
The overwhelming opportunities for India and Bhutan are in the energy generated and to be generated from these hydropower projects Hydropower generation maximize in summer
months matching with peaking demands in India
Present exports are 5,000 – 5,500 MU annually with installed capacity of 1,480 MW
With additional 10,000 MW of installed capacity, exports could increase by another 30,000 – 35,000 MU annually
Accelerated socio-economic development in Bhutan from hydropower projects would only further increase the already very high imports from India of all commodities
INDO-BHUTAN HYDRO POWER OPPORTUNITIES