2024: The FAR, Federal Acquisition Regulations - Part 29
Bhutan Country Presentation at ACEF 2014
1.
2. Overview
Institutional Arrangement of Energy Sector
Energy Access
Renewable Energy
Energy Efficiency
SE4ALL Initiatives & Findings of RA/GA report
Challenges
3. Institutional Arrangements
Ministry of Economic Affairs is the lead agency for Energy with
Five Departments to overlook the energy sector: DRE, DoHPS,
DHMS, DOT and DGM
Two Power Companies- DGPC and BPC
Independent Regulator- BEA
Existing Energy Related Policies:
Electricity Act of Bhutan, 2001
Economic Development Policy of the Kingdom of Bhutan, 2010
Sustainable Hydropower Development Policy 2008
Alternative Renewable Energy Policy 2013
Foreign Direct Investment Policy, 2010
4. Goal 1: Universal Energy Access
• Total Energy Consumption in Bhutan = 326,687 MTOE (Metric Tons of
Oil Equivalent)- Bhutan Energy Efficiency Baseline Study 2012
• Electrical Energy Consumption – 139,315 MTOE (1620 GWh), 57.4%
• Thermal Energy Consumption – 187,372 MTOE ( fossil fuels and biomass)
• Industry consumes 33.9% of the total energy of the country
• 99% hydropower driven and diversification is essential to ensure security of
supply
98% of rural populace has access to clean and modern energy
5. Goal 2: Energy Efficiency
No legal frameworks to address Energy Efficiency (EE)
Continuous awareness program on EE conducted
Baseline Study for Energy Efficiency conducted under UNDP funding
EE Study in Building Sector conducted and Building Energy Efficiency
Code drafted under UNDP funding
Energy Efficiency and Conservation Policy to be formulated under
Energy Plus (Norwegian funding)
Standards and Labeling for appliances to be developed under Energy
Plus
Demand Side Management through efficient lighting systems to be
implemented under Energy Plus (Norwegian Funding)
6. Goal 3 : Renewable Energy
Hydropower
• Techno-economically feasible (>10MW) = 23,760 MW (≈100,000
GWh)
• Total installed capacity – 1480 MW
• 3,066 MW under construction
Accelerated Hydropower Development
• 10, 000 MW development plan by 2020
10. Goal 3 : Renewable Energy
Alternative Renewable Energy
• Minimum Target of 20 MW by 2025 excluding SHP
Small hydropower ( upto 25MW)
• potential to be accessed
• total installed capacity – 8MW
Biomass/Biogas
• Constitutional mandate to maintain 60% under forest cover
• Source of primary energy (91% met by biomass)
• Over 16,000 biogas plants techno-economically feasible
• 2800 biogas plants under implementation
• 1200 biogas plants completed and operational
11. Goal 3: Renewable Energy
• 14,000 improved biomass stoves under implementation (UNDP
Funding)
• 170 improved biomass stoves commissioned
Wind Energy
• 500 – 600 kW pilot wind power project under implementation
(ADB/RGoB funding)
Solar Energy
• Over 0.25 MW installed (stand alone systems)
• Resource potential of 4.2 to 6 kWh/m2
/day
• 8 Solar Water Heating Systems (500-1000L) piloted
• Plan to install MW size grid interactive solar power plant
13. Fossil Fuels
• Coal reserve of 1.96 MT
• No known reserve => Import dependent!.
• Imported over 86,000 KL of diesel, 24,000 KL of petrol and 6,000
KL of kerosene in 2010.
• 100% of fossil fuel imported (stability of supply and price volatility
- more stress on the economy)
• Renewable Energy’s role critical for energy security and fossil fuel
(import) substitution
Other Energy Sources
14. SE4 ALL Initiatives
Bhutan joined SE4ALL in 2012 after the Rio Brazil Summit.
Energy Plus Cooperation Partnership with funding from
Norwegian Government
Rapid Assessment and Gap Analysis study with funding from
ADB (2012)
Findings from Rapid Assessment & Gap Analysis Study:
Energy Access
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
15. Findings from RA/GA Study
Renewable Energy Systems:
Develop RE roadmap for each of the RE technologies and
appropriate feed-in tariff system to incentivize private sector
participation in the development of RE resources
DRE needs to strengthen their capacity and gain experience in
promoting and developing RE technologies
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
16. Findings from RA/GA Study
No Energy Efficiency and Conservation Policy in place
No specific institution to coordinate EE activities in the country
Private Sector to play an important role in implementing EE
Financing requirement of EE has not been estimated due to the
absence of policy in place
17. Challenges
Renewable Energy :
No legal framewok
Technology very expensive compared to large hydropower
Lack of Institutional capacity
Lack of private sector capacity
Limited access to funds
Difficult geographical terrains
Providing affordable and reliable access to Renewable Energy
Energy Efficiency:
No Energy Efficiency & Conservation Policy
Poor private sector participation.
18. Investment Opportunities
Preparatory studies are being undertaken for promotion of
RE and EE under Energy Plus (Norwegian Funding)
Investment opportunities will open up after the completion
of Preparatory studies
Hydropower:
Need funding for Ratposhong Project (1230 MW in
Eastern Bhutan) to execute DPR and later investment
under Public Private Partnership.
1-2 projects to be implemented under PPP/IPP in the 11th
FYP.