Druk Green Power Corporation Limited
A Royal Government of Bhutan Undertaking
International Conference on SAARC@25
Co-operation in the Hydropower Sector between Bhutan and India
New Delhi, 16-17th September 2010
Rinzin Dorji
SE, Chhukha HydroPower Plant, Druk Green
Indo-Bhutan Hydro Power Opportunities
Presentation Outline
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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
oArea – 38,394 sq km
oPopulation ~ 650,000
oAltitude range from 100 – above
7500 m above mean sea level
oForest cover - 72%
ORGANIZATIONAL STRUCTURE
MINISTRY OF ECONOMIC AFFAIRS
Dept of Energy
Planning, policy, coordination,
specialist functions
Bhutan Electricity Authority
Dept of Trade
Fossil fuels
Dept of Industries
MINISTRY
OF
FINANCE
Regulatory functions
Druk
Holding &
Investments
Puna-I HP Authority
Puna-II/Mangdechhu
UNDER
CONSTRUCTION
PPP Projects
(Nikachhu,
Gamri, and others )
DrukGreen
-Tala Hydropower Plant
-Chhukha Hydropower Plant
-Kurichhu Hydropower Plant
-Basochhu Hydropower Plant
Dagachhu Hydro Power
Corporation
Bhutan Power
Corporation
Other Shareholders
-Tata Power Company
-NPPF
ROLE OF DRUK GREEN POWER
CORPORATION LIMITED
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
MISSIONS
Mission 1 : Effectively and efficiently manage hydropower plants, and
maximize returns
Mission 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
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
POTENTIAL FOR HYDROPOWER
DEVELOPMENT
Sl.No.
1
2
3
4
5
6
7
River-basins
Amochhu (Basin I)
Wangchhu (Basin I)
Punatsangchhu (Basin II)
Mangdechhu/Manas-West (Basin III)
Drangmechhu/Manas-East (Basin III)
Jaldhaka, Mau, Nyeraamari, Dhansiri
Others
Total
Area Schemes
(km2)
2,400
6
4,689
10
10,355
19
7,392
17
9,207
20
2,750
4
1,601
38,394
76
Potential
(MW)
2,060
2,740
8,099
3,889
6,692
280
Energy
(GWh)
9,656
11,139
25,495
18,322
33,422
1,213
23,760
99,247
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 socioeconomic development of Bhutan
PERFORMANCE OF THE
GENERATING UTILITY
Energy Generation, Domestic Consumption and Export to India
IMPACT OF HYDROPOWER TO BHUTAN’S
SOCIO-ECONOMIC DEVELOPMENT
Bhutan Power System (2009)
India
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
Installed
Power Plant
Capacity (MW) Remarks
1 Punatshangchhu-I
1,200 GOI financing
Total
1,200
Excavation of Main Access Tunnel to Power House
Dam Works of Punatshangchhu-I
HYDROPOWER PROJECTS (Cleared for
Construction)
Power Plant
1 Punatshangchhu-II
2 Mangdechhu
Total
Installed Capacity
(MW)
990
720
1,710
View of Punatshangchhu-II
View of Mangdechhu Dam Site
OTHER HYDROPOWER DEVELOPMENT
PROJECTS (UNDER 10,000 MW BY 2020
PLANS)
1
2
3
4
5
6
7
Installed
Power Plant
Capacity (MW)
Sunkosh Reservoir
4,060
Kuri-Gongri
1,800
Amochhu Reservoir
620
Kholongchhu
486
Chamkharchhu-I
670
Wangchhu Reservoir
900
Bunakha Reservoir
180
Total
Remarks
DPR
DPR
DPR
DPR
DPR
DPR
DPR
Construction of all
projects expected to be
8,716 started within 1-3 years
OPPORTUNITIES OF DOING BUSINESS IN
BHUTAN’S HYDROPOWER SECTOR
Hydropower Projects under 10,000 MW by 2020 with
Government of India Assistance
1
2
3
4
5
6
7
8
9
10
Power Plant
Punatshangchhu-I
Punatshangchhu-II
Mangdechhu
Sunkosh Reservoir
Kuri-Gongri
Amochhu Reservoir
Kholongchhu
Chamkharchhu-I
Wangchhu Reservoir
Bunakha Reservoir
Total
Installed Capacity
(MW)
1,200
990
720
4,060
1,800
620
486
670
900
180
11,626
Remarks
Under Construction
Construction by 2010
Construction by 2010
DPR
DPR
DPR
DPR
DPR
DPR
DPR
-
OTHER HYDROPOWER PROJECTS OF ROYAL
GOVERNMENT OF BHUTAN
1
2
3
4
5
6
7
Dagachhu
Augmentation of Tala
Nikachhu
Begana
Druk Bindu
Gamri
Aiechhu
Total
114
208
20
12
80
70
504
Under Construction
FS
FS
FS
PFS
PFS
PFS
Augmentation of Chhukha Plant
Dagachhu Surge Shaft Works
OPPORTUNITIES OF DOING BUSINESS IN
BHUTAN’S HYDROPOWER SECTOR
 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
 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)
Augmentation
of Chhukha
Plant 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
INDO-BHUTAN HYDRO POWER
OPPORTUNITIES
 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
Thank You
rinzdorji@druknet.bt
www.drukgreen.bt