Objectives
and Strategies of the Eighth Five-Year Plan
- 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 distribution
systems;
- Encourage the use of energy like hydropower,
which are renewable, environmentally clean and sustainable;
- Expand rural electrification;
- Liase with other Government agencies to
ensure the protection of existing and future hydropower catchments
areas; and
- Develop policy guidelines and power tariffs
conducive to the promotion of bilateral and multilateral cooperation
in hydropower development
While most major programmes were centrally executed,
the rural electrification programme was implemented at the Dzongkhag
level with close coordination and cooperation of Dzongkhag authorities
by the Dzongkhag based Electricity Supply Sections of the Department
of Power. The beneficiaries (communities) were closely involved at
the geog and village level during programme implementation.
The Power Generation Programme
Major projects for implementation during the
8FYP such as the Kurichu, Basochu and Tala hydroelectric projects
were reflected outside the plan budget outlay. The Kurichu project
of 60 MW and 400 MU generation capacity, construction of which started
during the 7th Five Year Plan, was completed during the 8FYP and has
started supplying electricity to six Dzongkhags in eastern Bhutan
and two Dzongkhags in southern-central Bhutan.
Surplus energy (about 90 per cent) from Kurichu is being exported
to the northeastern grid of India through the existing 132 kV Gelephu-Salakati
power line. Implementation of the Kurichu project has facilitated
other economic development activities in the eastern and south-central
region of Bhutan. Basochu Upper Stage of 22.2 MW and 105 MU generation
capacity was also completed and has augmented capacity in western
Bhutan as well as increased the reliability of grid-supply in the
capital.
The construction of the Tala hydroelectric project of 1020 MW started
during the 8FYP, and more than 50 per cent of the project has
now been completed. Physical construction of the Basochu Lower Stage
of 38.6 MW capacity has just started. Tala and Basochu Lower Stage
will be completed during the 9th Five Year Plan (9FYP). Rongchu micro
hydro of 200 kW capacity built across the Rongchu stream in Kellungchu
valley of Lhuentse Dzongkhag has been completed. This pilot project
was built under the Joint implementation Testing Programme, funded
by the Environment Ministry of the Netherlands and the Government
of Bhutan to test the possibility of sequestration of green house
gases. This is the first project, planned, designed and built entirely
by the Bhutanese engineers and local contractors without any external
technical assistance. The project is supplying power to about 200
households in Gangjur geog, villages in and around Kellungchu valley.
The power supply line from this project will be extended to Dungkhar
in the North.
In addition to the commissioning of the above-mentioned new projects,
existing mini-hydro such as the Thimphu Mini hydro (360 kW), Gangjur
(120 kW), Chumey (1500 kW), Gidakom (1250 kW), Wangdi (300 kW) and
Chenari (750 kW) have been rehabilitated. Construction of Yonglachu/Khoma
small hydro (1 MW) in Lhuntse and Panbang (200 kW) and upgrading of
Tintibi Mini hydro in Zhemgang were not carried out, as the sites
were found techno-economically non-feasible for development after
a pre-construction study. Extension of the existing eastern grid (fed
by Kurichu) was found more feasible for these places.
The 8FYP budget outlay
for these two projects have been re-appropriated accordingly to construct
Mongar-Lhuentse grid supply line in Lhuentse, to install a 40 kW diesel
generator at Panbang, and carry out grid extension works at Tintibi,
Zhemgang. In total, 3.570 MW of standby/captive diesel capacity was
added in the system in various Dzongkhag headquarters to improve the
reliability of electric supply and for emergency need. In conclusion,
additional hydropower of 82.4 MW and 506 MU annual generation capacity
has been achieved during the plan period, increasing installed hydropower
capacity with around 24 per cent. Total installed capacity of the
power system at the end of the 8FYP is 444 MW, including diesel-based
capacity. Annual average energy generation capacity has been increased
to 2,326 MU from 1,838 MU at the end of 7th Fiver
Year Plan period. The
Power Transmission Grid Programme
Under this Programme funded by the Government of India, the Eastern
Transmission Grid has been constructed to evacuate and distribute
Kurichu power. A 132 kV grid power line has been extended (67 km)
from Kurichu to Nanglam (initially built for the Dungsam Cement
Project power supply) via Nangkor in Pemagatshel under the scope
of the Kurichu project. Similarly, a 132 kV line has been installed
of (10 km) from Gyelposhing (Kurichu) to Killikhar (Mongar), and
a 30 km long line was drawn from Killikhar to Kanglung (Trashigang).
24 kilometres of grid supply has been added from Nangkhor (Pemagatshel)
to Deothang for power supply to Samdrupjongkhar. A 132 kV transmission
line has been extended (131 km) from Nanglam via Tintibi, Zhemngang,
to Gelephu, Sarpang, for export of surplus power generated by the
Kurichu project, and to increase the reliability of power supply
to the proposed Dungsam project in Nanglam. A total distance of
262 km, 132 kV line has been completed during the 8FYP with 6 major
transmission substations for distribution of electricity to the
load centres. The 48 km transmission line to Lhuentse substation
at Tangmachu will be completed in the beginning of the 9FYP period.
In Western Bhutan, 23 km's of 66 kV transmission line has been completed
from Lobessa to Basochu Upper Stage. Construction of 220 kV line
from Semtokha to Basochu Lower Stage power plant has started. Similarly,
construction has started of 400 kV lines to export Tala power and
the 400/220 kV, 200 MVA interconnecting substation between Chukha
and Tala grid supply at Malbasse, Pasakha, and will be completed
during the 9 FYP. Survey works for drawing grid power supply lines
to Tsirang and Dagana have also begun.
Under the improvement and upgrading of the transmission system,
Gedu substation has been upgraded to 26 MVA, 66/33/11 kV voltage
level for supply of construction power to the Tala project, and
work is ongoing to upgrade the Singhegaon 220/66 kV substation by
additional 50 MVA, Phuentsholing by 10 MVA, and Penden by 5 MVA.
The Power Distribution Programme
Under the Power Distribution Programme, 6,211 additional consumers
(as of December 2000) have been added to the system. Extensive rural
electrification has been carried out in about 189 villages in the
Dzongkhags of Ha, Samdrupjongkhar, Trashingang, Trashiyangtse, Chukha,
Thimphu, Punakha, Wangdu, Paro, and Lhuentse. 80 per cent of the
work has been completed for rural electrification of additional
6,028 households in various Dzongkhags under the Asian Development
Bank's loan project, Rural Electrification, Phase II.
Work has started to electrify other 388 households in Dungkhar,
Chungkha and Zhemgang under the Sustainable Development Project
funded by the Netherlands. Khuruthang Township was electrified and
substantial works on improvement and upgrading of existing electric
services in Thimphu and Paro have begun. About 253 km length of
33 and 11 kV overhead lines and 248 km long low voltage overhead
lines (400/230 volts) were added to the distribution network during
the first three years of the 8FYP period. The feasibility study,
conducted during the 8FYP rural electrification survey, found the
capacity coupling system non-feasible for rural electrification
in Kengkhar village, Mongar. The commissioning of the Kurichu hydropower
project has increased power sector activities in eastern Bhutan.
To cope with increased workload due to extensive rural electrification,
the Department of Power established independent Electricity Supply
Offices at Lhuentse, Mongar, Pemagatshel and Trashiyangtse in 2001.
Earlier, electric services in these Dzongkhags were looked after
from Trashigang. For the first time, grid electricity was made available
to Yangtse Dzongkhag during the 8FYP.
The Alternate Energy Programme
For institutional lighting of lhakhangs, goenpas, chamkhangs, monastic
schools/shedras, boarding schools, community schools and rural households,
180 sets of photovoltaic panels were installed in Chukha, Paro,
Haa, Thimphu, Punakha, Pemagatshel, Yangtse, Bumthang, Samdrupjongkhar,
Wangdue, Lhuntse, Trongsa and Mongar from the 7th Five Year Plan
spill-over stock. In Gasa, additional 115 sets were installed by
the Dzongkhag administration under donor assistance.
A National Strategy for Improved Stoves and Alternate Energy Technologies/Sources
was also formulated. The Department of Forestry Services installed
electric stoves in the Royal Bhutan Police complex as a pilot demonstration
project for replacement/reduction of firewood use by other alternate
energy sources. 1,350 solar electrification sets have been procured
during the end of the 8FYP period, and their installation has started
in various Dzongkhags for institutional lighting purpose.
Hydro meteorological networking and
feasibility studies
Collection of hydro meteorological data for hydropower planning
continued during the 8FYP. These data were collected from 21 river
gauging stations and 84 meteorological stations, and are archived
for future reference and record.
During the 8FYP, feasibility studies of Mangdechu Hydroelectric
Project of 360 MW across Mangdechu in Trongsa Dzongkhag, and Punatsangchu
Hydroelectric Projects of 870 MW across Punatsangchu in Wangduephodrang
Dzongkhag were conducted. These two projects have been found techno-economically
feasible and are planned for execution during the next Five Year
Plan periods. Gathana micro-hydro in Gasa Dzongkhag was investigated
and found unsuitable for electric supply to Gasa for techno-economic
reasons.
Under the GEF/UNDP funded project "Study to remove barriers to micro
hydro development in the Kingdom", four feasible micro-hydro sites
have been identified at Sengor (Mongar), Sakten (Trashigang), Tang
(Bumthang), and Gasa.
Institutional capacity building and
technical assistance
The Asian Development Bank provided technical assistance for the
development of legal and institutional frameworks for the power
sector, major scope of which included the development of an Electricity
Act, institutional framework for the power sector, and corporatization
plans for utility functions of the Department of Power. Based on
these studies and other plans, it is proposed to segregate and unbundled
the present functions of the Department of Power into three functions:
(1) Bhutan Electricity Authority (regulatory functions); (2) Bhutan
Power Corporation (BPC) (utility functions); and (3) Department
of Power/Energy (planning, policy and coordination functions). The
study also proposed that all generating entities, such as Chukha,
Kurichu, Basochu, and Tata, should belong to the same major holding
company.
Tariff studies have suggested that future power tariffs shall be
based on capacity, voltage level and energy consumption patterns
for industrial, commercial and bulk consumers. Lifeline tariff rates
based on various levels of consumption (slab system) are proposed
for domestic consumers (both rural and urban). The long-range marginal
costs of supply are reflected, and a cost-recovery system devised
accordingly. Subsidies, if any, shall be as per this transparent
tariff system.
A study for the preparation of water resources management plan and
a hydropower master plan update funded by the Norwegian Government
has just been launched and will be completed in the 9FYP period.
Operations and maintenance Under this Programme, operations and
maintenance of the existing power supply infrastructures were carried
out including the capital cost involved in the purchase of power
from Chukha Hydropower Corporation and import from India. Net plan
budget expenditure by the end of 8FYP is estimated to be over Nu
3,216.397 million, which is 95 per cent of the 8FYP total sectoral
budget outlay of Nu 3374 million on planned activities. This indicates
sectoral achievement of over 90 per cent of the 8FYP target. |
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