BHUTAN ELECTRICITY AUTHORITY

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1 BHUTAN ELECTRICITY AUTHORITY 1

2 1 RELEVANT PROVISIONS OF ELECTRICITY ACT OF BHUTAN, RESPONSIBILITES OF VARIOUS AGENCIES 3 ROLES FOR CROSS-BORDER TRADE 4 CROSS-BORDER CONNECTION 5 HYDROPOWER IN BHUTAN BHUTAN ELECTRICITY AUTHORITY 2

3 Purpose of the Act 1. Restructure the electricity supply industry; 2. Establish Bhutan Electricity Authority (BEA); 3. Enable technical regulation of electricity supply industry; 4. Enable private sector participation; 5. Empower Government to enable formation of any company to fulfill provisions of Act. BHUTAN ELECTRICITY AUTHORITY 3

4 Objective of the Act 1. Promote safe & reliable supply of electricity in the country; 2. Enhance revenue generation through electricity export; 3. Develop socio-economic welfare of people; 4. Promote economic self-reliance through financially viable and reliable electricity industry; 5. Promote renewable energy resources development; 6. Promote management efficiency and service delivery. BHUTAN ELECTRICITY AUTHORITY 4

5 Establish Bhutan Electricity Authority: 1. As body corporate with perpetual succession; 2. Chairman, minimum 3 members & CEO; 3. All members appointed by Minister for maximum of 5 years; 4. CEO as head of the Secretariat; 5. Secretariat employees appointed by CEO on approval of Authority. BHUTAN ELECTRICITY AUTHORITY 5

6 Function of Authority Economic and technical regulations: 1. Develop regulations, standards, codes: a) Performance standards & tariff setting; b) Minimum technical & safety requirement for construction and operation; 2. Process & issue licences; 3. Monitor licensees for compliance; 4. Determine tariffs; 5. Prescribe and collect fees and charges; 6. Impose sanctions and fines for any breach; 7. Settle dispute BHUTAN ELECTRICITY AUTHORITY 6

7 BEA issue licences to: 1. Generate electricity; 2. Transmit electricity; 3. Bulk supply; 4. Distribute electricity; 5. Supply electricity; 6. Trade electricity; 7. Transfer of licence. BHUTAN ELECTRICITY AUTHORITY 7

8 Minister (from the Act) : 1. Determine general policies, targets and strategies of electricity operation; 2. Approve power system expansion plans; 3. Provide policy solution on energy shortage and private participation; Assum to formulate Power System Master Plan BHUTAN ELECTRICITY AUTHORITY 8

9 System Operator (from the Act): 1. Load-generation balance domestic, export & import; 2. Generation forecast & dispatch, including export; 3. Transmission outage coordination; 4. Electricity export & import monitoring; 5. Prepare regulation for generation dispatch. BHUTAN ELECTRICITY AUTHORITY 9

10 Transmission Licensee (BPC): 1. Wheeling of power, including export; 2. Short-term planning; 3. Implementation of PSMP; 4. Ensure safety, reliability, security and stability of transmission system. BHUTAN ELECTRICITY AUTHORITY 10

11 Royal Government of Bhutan: Responsible for all international connection; Deals in international agreement relating to: 1. International connection & cross-border trade; 2. Export & import electricity tariff. Facilitate cross-border trade to utilities; Facilitate cross-border issue settlement. BHUTAN ELECTRICITY AUTHORITY 11

12 Bhutan Electricity Authority Issues licence to construct & operate transmission system up to border for international connection; Issue licence to construct & operate generating plant for export; Enforce equipment & operating standards to licensees, including for export; Determine export power wheeling tariff; Ensure grid power quality, including from international connection. BHUTAN ELECTRICITY AUTHORITY 12

13 Bhutan Electricity Authority Enabling regulations for cross border power: 1. Tariff Determination regulations; 2. Accounting and Reporting regulations; 3. Grid Code; 4. Distribution Code; 5. Safety Regulations; BHUTAN ELECTRICITY AUTHORITY 13

14 Transmission Licensee (BPC) Construct transmission system for international connection up to the border; Wheel export power of various generating plants; Operate transmission system; BHUTAN ELECTRICITY AUTHORITY 14

15 System Operation Schedule & dispatch export power; Scheduling domestic drawal for balance power export; Approve metering & supply arrangement of licensee at border; Compute energy export & import; Prepare report on deviation from schedules, including export & import. BHUTAN ELECTRICITY AUTHORITY 15

16 Existing International Connection Point Chukha to Birpara through 3-circuit 220kV lines; Tala to Siliguri at two double circuit 400kV lines; Deothang to Rangia at 132kV single circuit lines; Gelephu to Bongaigaon at 132kV single circuit lines. BHUTAN ELECTRICITY AUTHORITY 16

17 Planned International Connection Punatsangchhu-I to Lamoizangkha at two double circuit 400kV for connection to India (licensed); Proposed Mangedechhu to Gelephu at 400kV lines for connection to India (licence not processed). BHUTAN ELECTRICITY AUTHORITY 17

18 Country s estimated potential = 30,000MW Techno-economically feasible = 23, 760MW Current Installed Capacity = 1480MW (4.96%) 1. Chukha hydropower plant 336MW; 2. Kurichhu hydropower plant 60MW; 3. Basochhu hydropower plant 64MW; 4. Tala hydropower plant 1020MW. (Source BHUTAN ELECTRICITY AUTHORITY 18

19 Energy/Generation Scenario in Bhutan (year 2010): Energy Particular Energy units in million units Purchased Domestic Generation Domestic sale (Source: Amount in millions Nu. 2. Export Auxiliary & loss BHUTAN ELECTRICITY AUTHORITY 19

20 Existing hydropower Plant involved in power export: 1. Chukha hydropower plant (336MW); 2. Kurichhu hydropower plant (60MW); 3. Tala hydropower plant (1020MW). Hydropower plant in construction stage: 1. Dagachhu hydropower plant (114MW); 2. Punatsangchhu-I hydropower plant (1200MW); 3. Punatsangchhu-II hydropower plant (1020MW); 4. Mangdechhu hydropower plant (720MW). BHUTAN ELECTRICITY AUTHORITY 20

21 Permit to Survey issued (year 2010): 1. Amochhu reservior hydropower 620MW; 2. Chamkharchhu-I hydropower plant 670MW; 3. Kurigongri hydropower plant 1800MW; 4. Kholongchu hydropower plant 486MW (600MW); 5. Sunkosh reservior hydropower plant 4060MW (2560MW); 6. Bunakha reservior hydropower plant 240MW 7. Wangchhu hydropower plant 600MW BHUTAN ELECTRICITY AUTHORITY 21

22 Gather policy maker, regulator, implementer of the region for: 1. Drawing region s energy need in terms of timeschedule; 2. Planning generation harnessing and cross border interconnection. BHUTAN ELECTRICITY AUTHORITY 22

23 THANK YOU BHUTAN ELECTRICITY AUTHORITY 23