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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, 16-17 th September 2010 Rinzin Dorji S E , Chhukha HydroPower Plant, Druk Green.
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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, ChhukhaHydroPower Plant, Druk Green
Indo-Bhutan Hydro Power Opportunities Presentation Outline • 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 • Area – 38,394 sq km • Population ~ 650,000 • Altitude range from 100 – above 7500 m above mean sea level • Forest cover - 72%
ORGANIZATIONAL STRUCTURE MINISTRY OF FINANCE MINISTRY OF ECONOMIC AFFAIRS Dept of Energy Planning, policy, coordination, specialist functions Bhutan Electricity Authority Regulatory functions Dept of Trade Fossil fuels Dept of Industries Druk Holding & Investments Puna-I HP Authority DrukGreen Puna-II/Mangdechhu Bhutan Power Corporation • Tala Hydropower Plant • Chhukha Hydropower Plant • Kurichhu Hydropower Plant • Basochhu Hydropower Plant UNDER CONSTRUCTION PPP Projects (Nikachhu, Gamri, and others ) • Other Shareholders • Tata Power Company • NPPF Dagachhu Hydro Power Corporation
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
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
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 socio-economic development of Bhutan
PERFORMANCE OF THE GENERATING UTILITY Energy Generation, Domestic Consumption and Export to India
Bhutan Power System (2009) IMPACT OF HYDROPOWER TO BHUTAN’S SOCIO-ECONOMIC DEVELOPMENT 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 Excavation of Main Access Tunnel to Power House Dam Works of Punatshangchhu-I
HYDROPOWER PROJECTS (Cleared for Construction) View of Punatshangchhu-II View of Mangdechhu Dam Site
OTHER HYDROPOWER DEVELOPMENT PROJECTS (UNDER 10,000 MW BY 2020 PLANS)
Hydropower Projects under 10,000 MW by 2020 with Government of India Assistance OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR
OTHER HYDROPOWER PROJECTS OF ROYAL GOVERNMENT OF BHUTAN 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) in 2010 A break through as the first CDM hydropower project to be considered using cross border energy trade baselines Augmentation of Chhukha Plant
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