SE4ALL INITIATIVES IN BHUTAN Investor Forum 10 th ACEF, Manila 16 th June 2015 Tilak Sunwar Department of Renewable Energy Ministry of Economic Affairs Royal Government of Bhutan 1
OUTLINES Overview on Energy Sector Energy Policies Energy Situations Status of SE4All Initiatives & Status Investment Opportunities 2
OVERVIEW OF ENERGY SECTOR IN BHUTAN Ministry of Economic Affairs Bhutan Electricity Authority Druk Holding & Investment Dept. of Hydropower & Power System Dept. of Renewable Energy Dept. of Hydro-Met Services Dept. of Trade Druk Green Power Corporation Bhutan Power Corporation Colour Legend: Policy directives Investment Directives Regulatory Directives 3
ENERGY RELATED POLICIES 6/16/2015 Electricity Act of Bhutan, 2001. Economic Development Policy of Bhutan, 2010. Sustainable Hydropower Development Policy 2008. Alternative Renewable Energy Policy 2013. Foreign Direct Investment Policy, 2010. 4
ENERGY SITUATION IN BHUTAN 6/16/2015 Electricity Consumption & Export (2014) Generation Vs Load ( MW) 2013 1800 28% 1600 1400 1200 72% Gross Export (MU) 1000 800 600 Load Gen Domestic Consumption (MU) 400 200 Date Source: DHPS, Analysed by DRE Total Energy Generation: 7147.222 MU 7% of electricity imported to meet domestic demand 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Peak Demand (Dec 2013): 314 MW Firm Power (Dec 2014): 273 MW Source: Analysed by Jamtsho, S, DRE Source: BBS, Feb 2015 5
Forecast Share of Total Energy Requirement 6/16/2015 ENERGY CONSUMPTION AND FORECAST Sector-wise Energy Consumption (2011) 34% 16% 3% 47% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Baseline Forecast until 2020: Structural Change of the Energy mix Biomass LPG Kerosene Diesel Coal Aviation Fuel Petrol Electricity Industries Buildings Transport Others 0% 2005 2011 2013 2014 2015 2016 2017 2018 2019 2020 Source: ADB Study, 2014 6
SE4ALL INITIATIVES Bhutan joined SE4ALL in 2012 after the Rio Brazil Summit. Energy + Cooperation Partnership with funding from Norwegian Govt. Rapid Assessment and Gap Analysis study with funding from ADB (2012) Energy Access Findings of RA/GA No Clear policy targets to address reduced use of fuel wood for cooking and heating Require significant capacity building of public and private agencies to develop Bhutan s hydropower potential Renewable Energy Systems: Develop RE roadmap for all RETs and FiT DRE needs to strengthen their capacity and gain experience in promoting and developing RE technologies 7
SE4ALL INITIATIVES. Strengthening of the capacity of private sector to implement RE systems and financial institutions to finance RE systems No specific budget prepared for developing RE Energy Efficiency: No detailed studies of the potential of EE in the country have been undertaken nor EE specific programs developed No Energy Efficiency and Conservation Policy (No financing estimate) Private Sector to play an important role in implementing EE 8
GOAL 1: ENERGY ACCESS ELECTRICITY FOR ALL RE Target: As per VISION 2020 electricity for all by 2020 The JICA 2005 roadmap to achieve electricity for all by 2017 DPT 2008 electricity for all by 2013 >96% electrified 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Households Electrified Cummulative 89361 44691 43951 28273 18495 16418 12717 9778 5778 ~6FYP 7FYP 8FYP 9FYP 10FYP Five Year Plan Source: DRE 9
GOAL 2: RENEWABLE ENERGY Large Hydropower Hydropower Potential: Technically Feasible: 30,000 MW 23,760 MW Current Installed Capacity: 1,606 MW (6.8 %) Target by 2020: 10,000 MW Under Construction: 2940 MW Basin I : 4819 MW Basin II : 8182 MW Basin III : 10759 MW 10
SOME PPP HYDRO PROJECTS Dagachhu HPP Commissioned: Feb 2015 PPP : DGPC (59% equity, Tata Power Company ltd, India (26%) & NPPF (15%) -25-year sales agreement with Tata Power trading company -15% royalty energy -Loans were taken from ADB, Raiffeisen Bank, Austria and NPPF Dagachhu (126 MW) 100% DGPC subsidiary Company, SPV established in 2014 Nikachhu (118 MW ) Gamri I & II (81+85 MW) Rotpashong (1230 MW) Nyera Amari I & II (141+332 MW)
DIVERSIFYING ENERGY SOURCES Alternative Renewable Energy Policy 2013 Minimum Target of 20 MW by 2025 excluding SHP Small hydropower ( up to 25MW) Total installed capacity 8MW RE Master Plan & RE Road Map to be completed by end of 2015 FiT Framework to be adopted Improved Cook Stoves: Target by 2020: 15,500 Achieved May 2015: 6000 Biogas Plants Tech-economic feasible: 16,000 Target by 2020: 4420 Achieved: 1700 Wind Energy 600 kw pilot wind power project under implementation by ADB & RGoB Nov 2015 schedule for Commission Solar Energy Over 0.25 MW installed (stand alone systems) Resource potential of 4.2 to 6 kwh/m 2 /day 8 Solar Water Heating Systems (500-1000L) piloted Proposed to install 0.5 MW size grid interactive solar power plant 12
GOAL 3: ENERGY EFFICIENCY IMPROVEMENT Energy Efficiency & Conservation Policy- Under formulation 40 Industries Building Sectors Transport Sector Appliances & Equipment Survey Continuous awareness program on EE conducted S&L Program DSM through efficient lighting systems (LED lights) Energy Audit Outcome: Significant Energy Saving Potential! Building Transport Industries Appliances 13
INVESTMENT OPPORTUNITIES IN BHUTAN Investment opportunities on RE & EE will open up after the completion of Preparatory studies 1-2 large HPP to be implemented under PPP/IPP in the 11 th FYP. Further Information: www.moea.gov.bt 14
TASHI DELEK 15