Energy (Power)

 

BASIC SITUATION

Structure of Sector

The development of Bhutan's energy sector is of crucial importance to the country, and in recent years high priority is placed on this sector. In the past the major source of energy was fuel-wood which, together with kerosene and LPG, is still widely used for domestic purposes, followed by diesel and petrol, predominantly for transport. Now, hydroelectric power is assuming the leading role in the consumption pattern of energy./p>

Hydroelectric Power

The country is endowed with large hydropower generation potential, the total capacity estimated at over 20,000 MW. The Power System Master Plan (PSMP) study conducted during 1990-93, identified 91 hydropower potential sites above 10 MW capacity. The list of potential sites is not exhaustive, for many inaccessible sites were not surveyed by the study. The 1995 update of the techno-economically exploitable hydropower potential is over 16,280 MW.

During the 7FYP, the power sector accounted for some 25% of government revenue. The annual domestic consumption of electricity increased from 216.455 GWh at the end of 6FYP to 340.773 GWh by the middle of 1995. The distribution network also increased, along with the number of consumers from 19,626 to 29,000. There are at present 23 hydroelectric generating stations with 344 MW installed capacity plus 13MW Diesel Generator sets. The commissioning of Chukha tail race tunnel and Rangjung Hydro Power Project during 7FYP added 20 MW to the overall generation capacity.

National Power Generation Data during 1990-95 GWh (million Units)

Solar Energy

The solar power programme was launched to provide electric light to institutions in the remote areas. By the end of 7FYP, there were 1316 photovoltaic panels throughout the country distributed to schools, monasteries, basic health units and some to remote animal husbandry farms. With the good sunshine hours available in Bhutan, this recent and renewable form of energy has proved to be a viable alternative to grid supply where it has low economy of scale.

Fuel Wood

Fuel-wood continues to be the main source of energy for lighting, heating and cooking in the rural areas. At the national level it accounts for more than 75% of total energy consumption. It is estimated that per capita consumption of firewood is 1.2 ton which is one of the highest in the world. In order to minimize wood consumption, extensive rural electrification was launched in consecutive five year plans.

Fossil Fuel (Petroleum products)

With the development of communications, transport facilities also expanded rapidly during he 7FYP, thus increasing the consumption of imported petrol and diesel oil. While the consumption of kerosene has also increased in the rural areas for cooking and lighting, LPG is now in general use for cooking in the urban areas.

The import of petroleum products during the period 1991-95  

Finance

As a result of financial constraints, major projects such as Kurichu and Basochu Hydro-electric Projects, transmission grids, urban electrification and rural electrification were delayed. These capital-intensive projects which were expected to be completed during 7FYP, could not be launched until the second half of the plan and completion will therefore take place in 8FYP

Manpower

Most Power Sector activities are labour-intensive, and the lack of sufficient labour is a constraint which often hinders timely completion and maintenance of projects. In addition to unskilled and semi-skilled labour, there is also an acute shortage of skilled manpower for line maintenance and supervision in the filed. The Division of Power staff strength is only 685, inclusive of finance and administrative personnel, against the projected requirement of 1411 for 7FYP.

Technical

The power sector with its large establishment and distribution network is faced with an acute shortage of transport. The Department also lacks sufficient tools and plants for proper maintenance of the existing system, and portable communication sets to coordinate simultaneous activities in the field between two or three groups working on the same line.

Hydropower

The division of Power, is responsible for coordinating activities related to hydropower generation and distribution, and is also the main central agency for power generation and distribution from small hydels. Altogether, under its Operation and Maintenance and Project Wings, it controls 20 hydel units and coordinates the activities of 7 decentralized Electricity Supply Units.

The Chukha Hydro Power Corporation (CHPC) is an autonomous body under a Board of Directors. Similarly, Kurichu Project Authority (KPA) is overseeing the general administration and overall coordination of Kurichu Hydropower Project activities under the guidance of the Board of Directors.

Fuel Wood

The Division of Forest, Ministry of Agriculture, regulates the fuel wood supply. In the rural areas fuel wood from dead wood is free but cutting of live trees is regulated by permit issued by the local Dzongkhag Forest Ranger. In the urban areas fuel wood is supplied by licensed contractors and to a certain extent by the registered saw mills.

Fossil Fuel

Two private companies supply petroleum fuel products in the kingdom. There are 24 fuel depots situated at convenient point in various dzongkhags. The Ministry of Trade and Industries regulates the price and supply of fossil fuels.

Objectives of the 7FYP

- Increase Government revenues through the generation of power for sale to India and to domestic industries;
- Fulfil demand for electrical energy at minimum cost, and as far as possible on a uniform basis, to all the consumers through a safe reliable and efficient distribution system;
- Ensure balanced regional growth through the provision of energy for industrial development; and
- Ensure environmentally sustainable use of hydropower resources.

Strategies

- Coordinate efforts with other sectors in protecting water resource catchments;
- Ensure environment friendly, and safe construction of hydropower generation, transmission and distribution infrastructure, including rural electrification;
- Mitigate the shortage of manpower by HRD as well as by contracting more work to the private sector.

Power Generation Programme

The construction and commissioning of the 2.2 MW Rangjung hydel Project was completed. The plant is in operation and providing additional electricity to the distribution network for urban and rural electrification in Trashigang and Yangtse Dzongkhags. It covers 7 gewogs and give electricity to more than 3,000 consumers (households).

Kurichu Project (45 MW) was only about 40% completed, and about 20% in the case of Basochu Hydropower Project (60.8 MW). These two projects will be commissioned during the 8FYP.

Transmission Programme

The construction of 40/20 MVA, 220/66/11 kV substation at Semtokha and 50/20 MVA, 132/66/11 kV substation at Gelephu under Government of India grant assistance was completed. The construction of a 20 km 66 kV line between Lobesa and Basochu was implemented and is expected to be completed by the beginning of 8FYP. This line will provide the construction power to Basochu Hydropower Project initially, and later on evacuate power from Basochu stage I (22.2 MW) to feed into the existing grid at Lobesa.

The feasibility study for the construction of 35 km 220 kV line between Basochu and Semtokha substation was also completed. Grant assistance from the Government of Japan is expected for the construction of this 220 kV line and its substation bays. It would be commissioned with 8FYP in parallel to the commissioning of Basochu stage II.

On the Eastern and South-Eastern grids the walk-on survey of transmission lines and substations was completed in 1993-94, and with Government of India funding these transmission line swill be completed in the 8FYP.

Urban Electrification and Sub-transmission & Distribution Programme

In Thimphu numerous substation & underground cable upgrading was carried out to meet the growing demand for power. the construction of a dedicated 11 kV line between Gelephu & Sarpang, and 33 kV line between Gomtu & Samste, to meet the growing demand in these two Dzongkhags was completed.

The sub-transmission and distribution programme funded by the Government of India for the 6 Dzongkhags (Ha, Paro, Trashigang, Pemagatshel, Lhuntse and Samdrup Jongkhar) was completed by the end of 7FYP. This programme brings electricity to Pemagatshel. Lhuntse sub-transmission & distribution network was upgraded and improved to receive power from the proposed Ganzur micro hydel which is to be upgraded to 70 kW capacity.

A total of 46 sets of solar panels were also distributed to public institutions in Gasa Dzongkhag where there is no electricity.

Rural Electrification Programme

The rural electrification scheme achieved over 80% of its target in the 7FYP despite financial delays. By the end of the plan the electrification of 107 villages was undertaken from internal resources, plus a further 47 villages with grant assistance from the Government of India and from the Dutch Government under the Sustainable Development Programme. 5,990 rural households received electricity during this plan period. The programme for the remaining villages will be completed in 8FYP.

Hydropower /investigation and Feasibility Study

The spill-over works of the Power System Master Plan from the 6FYP were completed in 1993. The National Hydrological and Meteorological networks were established with trained manpower. The Pre-feasibility study of four hydropower project sites was carried out, and Detailed Project Reports (DPR) for Tala (1020 MW), Wangchu (900 MW), Bunakha (180 MW) and Sankosh (4060 MW) projects were prepared. Investigation of Gyetsa pondage scheme to augment the peaking power in Bumthang was also completed by the end of the 7FYP.

Unspecified Schemes

During the 7FYP, a number of unspecified schemes were implemented, including rehabilitation of mini hydels of Thimphu, Chenary in Trashigang and Gangzur in Lhuntse to produce original rated capacity. An additional tail race tunnel at the cost of Nu 33.540 million was constructed in order to generate 18 MW more from CHPC. Further, a Small Transformer Production (STP) project was implemented in collaboration with Interlife/PMU of Sweden to manufacture small transformers within the range of 16 kVA to 125 kVA in the country.

Objectives

- Implement construction, selectively, of power projects for which detailed project reports have been completed;
- Enhance revenue collection by efficient operation of the existing hydropower stations and its distribution system;
- Encourage the use of energy sources like hydropower which are renewable, environmentally clean and sustainable;
- Extend rural electrification;
- Liaise with other government agencies to ensure the protection of existing and future hydropower catchment areas.
- Develop policy guidelines and power tariffs conducive to the promotion of bilateral and multilateral cooperation in hydropower development.

Programmes for 8FYP

The programmes are to be implemented at National and Dzongkhag levels. The National level programmes are: Power generation construction and transmission, feasibility studies of new projects, alternative energy, research & development and institutional development. The Dzongkhag level programmes consist of urban and rural electrification in the respective Dzongkhags.

Power Generation (Construction) Programme

This programme includes the major investment projects for the 8FYP which will be reflected outside the development plan outlay. These projects are :

Kurichu Hydroelectric Project (45 MW) and Basochhu Hydroelectric Project (60.8 MW), will be commissioned around the middle of 8FYP. The Kurichu Hydroelectric project will provide 45 MW of power, 322 GWh of energy, in the Eastern part of the country, facilitating economic activity in the 5 Eastern Dzongkhags, as well as the construction of Dungsum Cement Project at Nanglam. On completion, the Bascochu project will produce 291 GWh of energy and feed the existing Western transmission grid being supplied by Chukha Hydro Power Corporation, thereby increasing the reliability of power supply to ten Dzongkhags in the western pat of the country.

The Detailed Project Report (DPR) of Tala hydroelectric Project (1020 MW) was preapred in 1994 and the agreement for financing, power purchase and project implementation was subsequently signed with the government of India in 1996 during His Majesty's visit. It is envisaged that the pre-construction and infrastructure development activities will commence on the eve of the 8FYP, with construction extending beyond 8FYP and commissioning around the middle of the 9 FYP. This project will generate 3962 GWh of energy per annum and will be one of the biggest power plants in the country.

The Bunakha Reservoir scheme (180 MW) project is also ready for implementation in 8 FYP, with commissioning in 9 FYP. According to the Detailed Project Report, it will generate 688 GWh annual production (90% dependable year) and contribute 101 GWh of additional energy to the existing Chukha hydel project and further cascade effect on the Tala project.

While the above mega projects are designed mainly for export, two small hydro power projects - Lhuntse Small Hydel Project (1 MW) and Panbang Mini Hydel Project (200 kW), will also be constructed during the 8FYP for local domestic supply and distribution to neighbouring Dzongkhags.

New Lines & Substations

Construction will include a 220 kV line from Basochhu to Semtokha and a 66 kV line from Basochhu to Tsirang and diversion to Dagana. Similarly, under the Eastern grid plan, for evacuation of Kurichu power, a 132 kV transmission line from Gyelposhing to nanglam, and a 66 kV line form Gyelposhing to Nanglam, and a 66 kV line from Gyelposhing to Transhigang via Mongar and Pemagatsel to Deothang, are to be constructed. A walk-on survey for the eastern grid as well as the south-central grid has been conducted. Successful implementation of these transmission networks, especially the eastern grid will provide much needed power in this densely populated part of the country.

Improvement & Upgrading of Transmission Lines & Sub-stations

- One third of the 66 kV transmission line towards Gomtu and Samtse is in a land slide zone and many towers are liable to be washed away during heavy rains. At least 10 km of the 27 km line will therefore be realigned. The 66/1 kV sub-station at Gomtu is likely to reach its capacity after the upgrading of production capacity of PCAL. More over, the power supply to Samtse and the surrounding villages need to be carried over the 33 kV line. Accordingly, it is proposed to install one 5 MVA, 66/33 kV transformer and substation.
- The existing 6 MVA 66/33/11 kV will be adequate to meet the demand for Gedu as it is an industrial area and selected site for headquarters of Tala Project during construction. It will therefore be upgraded to a 20 MVA, 66/33 kV substation.
- Under Phuntsholing Electricity Supply Unit, the Singyegaon 6MVA, 66/11kV substation will be upgraded to 10 MVA, 66/33/11 kV in order to meet the growing demand from the mushrooming small industries at Pasakha and to electrify the villages in Bhalujora Gewog. Similarly the existing 6 MVA sub-station for distribution in Phuntsholing town is to be augmented with another 10 MVA transformer to meet the increasing demand for power in the urban area.
- The tripping of line and snapping of conductors at high altitude and during snowfalls interrupt power supply when it is most required. As a remedy it is proposed to install snow-rings for transmission lines passing through the snow zone, which will prevent snow flakes accumulating on the conductors. A few troublesome transmission towers will also be relocated in order to minimize maintenance work.

Power Distribution Programmes in Each Dzongkhag

The implementation of the Power Distribution Programme will be carried out t the Dzongkhag level because the distribution of electricity is delegated to the Electricity Supply Unit (ESU) of each Dzongkhag. The programme has the following schemes:

Rural Electrification Scheme

It was not possible to complete all the rural electrification schemes planned for 7FYP, so that some are carried over to 8FYP. These will be consolidated into the 8FYP rural electrification scheme based on proposals from the Dzongkhag GYT's and DYT's and availability of generation capacity. The scheme will include grid extension, the constructing of micro/mini hydels and, in some cases, the provision of photovoltaic panels, and, overall, provide electricity to 5000 rural households.

Urban Electrification Scheme

Taking account of Dzongkhag plans for township development, new sub-transmission and distribution networks will provide electricity to 1500 new consumers in these urban areas. The scheme will be implemented through grid extension where electricity is available now, and will involve construction of a 33/11 kV sub-transmission line and 440/230 volts distribution lines & substations with matching maintenance centers.

Improvement of Existing Supply in Rural and Urban Areas

This scheme will focus on the improvement of efficiency, voltage regulation and quality of the existing Electricity Supply Services (loss reduction, reliability improvement, energy conservation) by system upgrading, systematic maintenance and replacement of old parts, including existing photovoltaic panels. The scheme will also augment the existing network by adding new lines and substations.

Hydropower Feasibility Studies

Feasibility studies on the following major hydropower projects will be undertaken during the 8FYP:
- Wangduephodrang Hydro Power Project stage I (site 3.120) - 760 MW Punatsangchhu below Jala / Ula villages.
- Wangdiphodarang hydro Power Project stage II (site 3.230 B) - 650 MW below Daga Uma village.
- Mangdechu Hydro Power Project (site 4.020) - 265 MW near Kunga Rabten

Institutional Development

The increasingly important role that the power sector will play in the future of the country and its economy, will inevitably give rise to substantial opportunities for employment. Accordingly it is proposed to prepare a long-term HRD master plan for the power sector, and to establish a power Training Institute during * FYP, for the construction of which the Government of India has already committed the funds.

Other Programmes

Apart from the above major programmes, a number of miscellaneous studies and research activities will be carried out related to the long-term development and sustainability of the sector.

Financial and Manpower Requirement 

PROJECT PW 01 : LHUNTSE SMALL HYDEL PROJECT

Project summary :

1. Sector : Power

2. Location : Wangla / Yongla Chu, Lhuntse

3. Executing Agency : Division of Power, MTI

4. Implementing Agency : Projects & Investigation Wing Division of Power

5. Estimated cost:
Recurrent : Nu. 8.400 m
Capital: Nu. 105.000 m
Total: Nu 113.400 m

6. Funds Secured : Nil

7. Financing Gap: Nu. 105.000 m

8. External finance reqd.: Nu. 105.000 m

9. Status : New

10. Documents available: Pre-feasibility study reports (1996) by CWC.

Project Objectives

Generate hydro-electricity for meeting the most essential electricity demand of Lhuntse district. The villages in and around Khoma village, Lhuntse town and Tangmachu areas are planned to be electrified by the power supplied from this project.

Project Description

Lhuntse Small Hydel project of 1 MW capacity is bu9ilt by tapping the water from Wanglachu river near Khoma village. The project is expected to generate 8.76 GWh of energy annually at 60% plant use factor. The project site lies about 8 km away from the main road. It is a run-of-the river scheme. Cableways will be used for transport of materials.

Project Impact

The project is expected to benefit more than 1000 numbers of household consumers and about 3 boarding schools, 1 hospital, 2 Basic Health Units, telephone exchange and other Government institutions including Lhuntse town. Some small scale agro-based industries may also come up and promote industrial utilization of power. The project is designed in such a way that it will have minimum negative environmental impact. On the contrary, it will reduce fuel wood consumption and save forest to some extent. The project will provide an alternative energy source for domestic consumption and reduce pressure on fuel wood which is already very scarce.

Project Management

The Projects and Investigation wing of the Division of Power will manage the project construction activities in cooperation with Lhuntse Dzongkhag Administration.

Financing Detail  

Financing and construction details are as follows :

Manpower Requirement

It is expected to mobilize more than 252 personnel, both skilled and unskilled, regularly at the site for 3 years of construction period. Local labourers will be employed to the extent possible with import of a few skilled labourers and technicians.

Equipment

Electro-mechanical equipment and technology will be imported from India or other countries.

Technical Assistance

Professional services for the detailed design, construction supervision and for final testing and commissioning of plants and equipment of hydropower project will be required.

PROJECT PW 09 : SOLAR ENERGY PROJECT

Project summary :

1. Sector : Power

2. Location : Nationwide

3. Executing Agency : Division of Power, MTI

4. Implementing Agency : Renewable Energy Unit, Division of Power

5. Estimated cost:
Recurrent : 2.800 m
Capital: Nu. 35.000 m
Total: Nu . 37.800 m

6. Funds Secured : Nil

7. Financing Gap: Nu. 35.000 m

8. External finance reqd.: Nu. 35.000 m

9. Status : Continuation

10. Documents available: None

Project Objectives

Implemented solar energy programme by installation of photovoltaic panesl, solar water heaters and solar dryers.

Project Description 

The Solar Energy Programme is aimed at providing alternative sources of energy supply for lighting, heating of water in the remote and rural areas where electricity grid extension or micro hydropower generation is not feasible/possible during the next 25 years. Besides, the solar water heating or air drying systems can be an effective means of utilizing solar energy in conservation of other energy options. It can supplement or augment the supply of other forms of energy. Photovaltaic lighting will be locally fabricated or assembled. The remote boarding schools, Basic Health Units, monasteries and remote households will be the target beneficiaries. As the life of lighting sets, charge controllers and batteries is only 5 years, maintenance strategy for sustaining the system will be worked out and given to the end-user for their follow-up.

Project Impact

The socii-economic condition of the propel will be improved with the provision of the energy facilities such as solar lighting, heating or drying devices. Pre-heated water from solar water heaters can be used for cooking foods, thereby saving extra heating energy normally provided by fire-wood or other forms of energy (gas, kerosine). Photovoltaic panels can provide light to replace kerosine lamps or wood-splinters. Solar dryer can be effectively used to dry chilies (peppers), fruits or meat in a hygienic manner. Thus solar energy will provide alternative options of renewable energy to the consumers and help to reduce the fire-wood and kerosine consumption etc. to minimize global warming effect and to reduce pollution.

Project Management

The Renewable Energy Unit of the Division of Power will implement the project with a little support from the consultant. The Central Maintenance Unit will provide the prototype testing and fabrication facilities for the development of prototypes. Once the designs are proved and found adaptable at site, they will be patented and given to private entrepreneurs for mass fabrication and marketing. Similarly PV panels will be installed and, maintained through private service sectors.

Financing Detail

The project will involve the installation of 500 solar lighting sets, 25 water heating systems, 10 solar dryers besides maintenance of the existing PV panels over the 8FYP period as pilot schemes.

The breakdown of costs is as follows:

Manpower Requirement

The project will be implemented through private parties under the technical guidance of Rural Energy Unit, Division of Power. About 26 (engineers and technicians) are required on a regular basis to implement the project.

Equipment

Photovoltaic panel and batteries will be imported. Only materials will be imported for the assembly/fabrication of other items such as solar water heaters, invertors, fixtures and solar dryers.

Technical Assistance

Technical assistance is required for funding part of the project.

PROJECT PW 03 : WESTERN TRANSMISSION GRID

Project summary : 

1. Sector : Power

2. Location : Chukha, Thimpu, W/Phodrang, Tsirang & Daga

3. Executing Agency : Division of Power, MTI

4. Implementing Agency : Transmission Const. Unit, West

5. Estimated cost:
Recurrent : Nu. 39.80 m
Capital: Nu. 497.50 m
Total: Nu 537.30 m

6. Funds Secured : Nil

7. Financing Gap: Nu. 537.30 m

8. External finance reqd.: Nu. 537.30 m

9. Status : New

10. Documents available: 1] Power System Development Study Report - 1995, Worley Consultant, TA 2043-BHU, ADB;
2] Detailed Project Report of Tala Hydro-electric Project, August 1993. WAPCOS;
3] 7FYP Document Vol. 1 and Vol. 2, 1991.

Project Objectives

Transmit hydro-electricity generated from Chukha, Basochu, Tala Punatsangchu hydro-electric projects to the various load centres in the western region of the country and to export surplus power to India.

Project Description

The following transmission lines and substations will form the part of Western grid to be expanded during the 8FYP and 9FYP. The sub-projects will comprise the following schemes:

Transmission lines :