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CONTENTS
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Background
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Hydro Electricity Power Projects of Bhutan
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Revenue
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On-going
Projects
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Future Projects
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Mangdue Chu Hydroelectric Project
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The Sunkosh Multipurpose Project (SMP)
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India's
Need
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Latest News on Hydro Projects - August
28, 2004
1. BACKGROUND
Bhutan got its first electricity in
1966, when the first 256 KW diesel generator was installed in
Phuentsholing in 1966. Bhutan's first 360 KW hydropower plant
was installed in Thimphu in 1967. In 1968,
Samtse,
Sibsoo and Phuentsholing in southern Bhutan were provided with
electricity supplied from the West Bengal State Electricity Board of
India. Similarly Samdrup Jongkhar, Sarpang and Gelephu also in
southern Bhutan were electrified in the years 1969 to 1973 with
electricity supplied from the Assam State Electricity Board of
India.
Bhutan’s total electricity output form the major hydro-power
projects as of September 2004 stands at 445 MW.
Chukha:
336 MW - commissioned - 1988
Kurichhu:
45 MW - commissioned - 2002.
Basochu Upper Stage : 24
MW- commissioned- January 2002
Lower Stage or phase II: 40
MW-commissioned- Mar 26, 2005
Total
445 MW
The
total power output of Bhutan is 457 MW ( according to Kuensel
Mar 30,2005).The
total
domestic consumption is at around 105 megawatts
2.
Hydro Electricity Power Projects of Bhutan
The hydroelectricity power sector is
the single biggest revenue earner of Bhutan. Bhutan’s
hydro-electricity power potential is estimated at over 30,000 MW.
Out of which, safe and exploitable water resources potential are
estimated at 16,000 MW. India has helped Bhutan in the development of
its hydro-power resources in a big way.
In fact, Indian assistance is unique.
The hydro-power cooperation
between Bhutan and India started with the signing of Jaldhaka
agreement in 1961. The
Jaldhaka Hydel is located on the India side of
Indo-Bhutan border in West Bengal state.
The 27 MW
(3 x 9 MW) Jaldhaka Hydel Power Station Stage-I was commissioned in
1967-72 and the Stage-II Power House, with and installed
capacity of 8 MW (2 x 4 MW) was commissioned in 1983
On
September 18, 2003, King Jigme Singye
Wangchuck addressed the Indian media in New Delhi
during his state visit to India on September 14-18, 2003.
“Water is to us what oil is to the Arabs,” the king said explaining his policy to integrate Bhutan’s economy
with India’s.
3. Revenue:
Hydroelectricity export has become the single most important
source of revenue for Bhutan.
The
Bhutanese economy saw an estimated GDP growth of 6.8 percent in
2003-2004. During the same period,
the power sector grew by 9.5 percent
and its share in the GDP increased to 12.3 percent according to the
latest report released by the National Statistical Bureau, Thimphu,
on February 28, 2005. The growth was largely spurred by the sale of
electricity to India from power projects, with the Chhukha Hydro
Power Corporation Limited contributing more than 80 percent to the
export. Total electricity export to India increased to Nu. 2.6
billion in the year. The revenue from the sale of power is, however,
expected to be more with the recent rise in the export tariff from
Nu. 1.5 to Nu. 2.0 a unit.
Hydroelectricity export has even made Bhutan’s trade with
India surplus by Nu 448.7 million for the first time in 1996. The
export of Chuka electricity changed the trade balance scenario in
favour of Bhutan. As a consequence, its overall balance of payment
with India was surplus by Nu 79.59m according
to the Royal Monetary Authority of Bhutan. It generated 1,972.18
million units (MUs) of
electricity in 1995-6. Its export to India was to the tune of 1,564.04
MUs at a value of Nu 747.56 million
India pays for the project, and then buys electricity at very cheap
‘‘friendship’’ rates from Bhutan.
The
Chukha Hydro Power Corporation (CHPC)
has been earning more than 40 percent of
the national revenue of Bhutan.
According
to the government sources, by the year 2006, Bhutan would be exporting
about 6,400 MUs of power annually. The revenue from hydropower projects
along with earnings from the other traditional revenue sources could
reach about Nu. 15 billion annually.
The following mega and medium power projects of
Bhutan deserve mention.
Chukha Hydro Power Corporation (CHPC):
Fully operational.
Tala Hydroelectric Project Authority (THPA): Under Construction
- Likely to be completed in June 2006.
Kurichhu
Hydro-Electric Project: Commissioned in 2002.
Basochu
Hydro Power Project: Commissioned in March 2005.
Punatsangchu hydroelectric power project: MoU signed.
Sunkosh
Multipurpose Project (SMP): Left for future development.
Mangdue Chu:
Left for future development
4.
On-going Projects:
This page contains general information on Bhutan's power projects
and news related to power projects. The specific information
on mega-power projects -
Chukha Hydro Power Corporation (CHPC),
Tala Hydroelectric Project Authority (THPA), Kurichhu Hydro-Electric
Project and Basochu Hydro Power Project have been placed in
separate pages. Please click on the following links
Chukha
Hydro
Power Corporation (CHPC)
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Updated on
April 05, 2005
Tala Hydroelectric Project
Authority (THPA)
-Updated on
April 06, 2005
Kurichhu Hydro-Electric Project
-Updated on
April 06, 2005
Basochu Hydro Power Project
-
Updated-
May 05, 2005
Punatsangchu hydroelectric power
project: - MoU signed.
5. New and other Projects
The following hydroelectric
project have been identified for future development:
6.
Mangdue Chu Hydroelectric Project: Bhutan and Norway had signed agreement for
cooperation on Mangdue Chu Hydroelectric project. In August, 1997,
Norway committed Nu. 95.5 million for the technical, environmental,
and economic feasibility study of the 360 MW Mangdue Chu
hydroelectric project in the central region. The feasibility study
of the Mangdechu Project under the NORAD/Norwegian Government
funding has been completed. The study has found that a hydro power
project of 360 MW capacity across the Mangdechu in Trongsa dzongkhag
is feasible. The project construction investment is planned in the
Ninth Five Year plan and it is expected to be completed in the Tenth
Five Year plan.
His Majesty King Jigme Singye Wangchuck, during his visit to India
in September 2003,had also requested India to take up 360 MW
Mangdechhu project requiring an investment of $349 million. Source:
Hindu March 03, 2004
7.
The Sunkosh Multipurpose Project (SMP): The SMP is the biggest identified
hydroelectricity project of Bhutan. The Central Water Commission
of India (CWC) was retained as the contractor to prepare a Detailed
Project Report (DPR) on the project. Accordingly, after three years’
study, the CWC submitted a 37 volume DPR on the SMP, to the Royal
Government of Bhutan (RGOB) on December 30, 1997.
The
SMP could be Bhutan’s largest hydroelectricity project. According
to the DPR, it would have an installed capacity of 4,060 MW of power.
The cost is estimated at Nu 77.93 billion ( Us $ 1.60 billion).
The cost could escalate in ten years. The SMP will be located at
Karbari village in Sarbhang district in Southern Bhutan. The project
would comprise two dams, the main one for power generation and the
second to feed a 141 kilometres irrigation canal. Out of the proposed
141 kilometres canal, only 13 kilometres of canal will be inside
Bhutan while the rest will be in India. It would supply power to
the entire North-east and reach as far as Merrut in Uttar Pradesh
state of India. It would irrigate and supply drinking water to the
Indian states of West Bengal and Bihar. The project is expected
to take about 10 years to complete.
8. India’s
need: India’s cooperation in developing Bhutan’s hydro-power
is well beyond the scope of development cooperation - it is based
on commercial partnership. "It is time for Bhutan and India
to look at cooperation in hydro-power development not merely as
an exercise in bilateral goodwill but as a commercial partnership,"
said Indian Power Minister Kumarmangalam during his visit to Bhutan
on October 26-29, 1998. "India’s pressing need for power,
the affordability and reliability of hydro-power over thermal power
and Bhutan’s potential to produce hydro-power were some of
the reasons for developing a commercial angle to the bilateral hydro-power
cooperation" he had said. Further, he had also pointed out
that "India is estimated to be short of 30,000 MW of power...
it is a ready consumer just across the border by the time, the 1,020
MW Tala project is commissioned". The Joint Secretary (North)
of the Indian External Ministry, Mrs Meera Shankar, on a visit to
Thimphu, said that "outside the Plan, power projects are given high
priority
by the Indian government".
9. Latest News on Hydro Projects
Foreign power in Delhi: Bhutan to
the rescue
Hindustan Times August 28, 2004
In three years, Delhi may start drawing
foreign" power. The Delhi Transco Limited (DTL) has begun the
groundwork for constructing a 400/220 KV grid station opposite
Maharani Bagh, on the low-lying area near the Sarai Kale Khan
crematorium. The power for this will come from the excess supply that
will be made available in the northern region from the upcoming
1,000-MW Tala power project in Bhutan. "A transmission line from the
plant will come to the northern region via the eastern region. This
will lead to more power in the system and by displacement feed the
upcoming grid station, which should be complete in about 26 months,"
Transco director (operations) S.R. Sethi said. At present, the land,
which is close to the riverbed, is being filled up to a height of
three metres. The plot was involved in several court cases. Transco
will also construct part of the 220 KVA station here.There's more good
news on the power front. On Friday, Transco finally identified a plot
where a 220 KV sub-station will be constructed for south Delhi. Nearly
four years ago, the DDA allotted it a site near the Siri Fort wall but
due to ASI's objections, no work could begin here. So, Transco
recently asked DDA to give it some place where work could begin fast.
"This plot is opposite the Savitri cinema and was selected when DDA
and our team went looking for an alternate site," Sethi said. Being
built by DTL at a cost of about Rs 25 crore, it would feed south Delhi
areas like Greater Kailash, Masjid Moth, South extension, Defence
Colony, Ayurvigyan Nagar and AIIMS once complete in about two years.
This substation would get power from the upcoming Maharani Bagh grid
station. At present, south Delhi is fed by grid stations in Mehrauli,
Vasant Kunj, Okhla and Lodhi Road. Once this one is complete, it would
allow the government to meet south Delhi's ever-growing load
requirement with fewer breakdowns. Meanwhile, on Friday, power
minister Haroon Yusuf inaugurated the upgraded 66 KV BSES Batra grid
station. The distcom has spent Rs 1 crore on the improvement work and
is now confident of giving residents of nearby areas much better power
supply.
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Power Projects in Bhutan
Press
Information Bureau August 26, 2004
RAJYA SABHA : The Minister of State in
the Ministry of External Affairs, Shri Rao Inderjit Singh told the
Rajya Sabha today that Hydropower generation has been identified as
one of the core areas of cooperation between India and Bhutan. It is
an ongoing programme under which 336MW Chukha Hydroelectrocity
Project and 60MW Kurichu Project have been commissioned in 1988 and
2002 respectively. Currently 1020MW Tala Project is under
implementation and is expected to be commissioned in the first
quarter of 2006. The Projects are financed on a 60:40 grant: loan
basis. The Detailed Project Report of 800+MW Punatsangchu Project is
also being undertaken currently. While these Projects generate
substantial revenues for Royal Government of Bhutan, most of the
electricity from the Projects is transmitted to energy deficient
states in India at a mutually agreed tariff. This information
was given to Rajya Sabha today by the Minister in reply to a
question by Shri Gireesh Kumar Sanghi.
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WAPCOS to
prepare DPR for Bhutan hydel project
By Pratim
Ranjan Bose
Hindu March 03, 2004
KOLKATA,
MARCH 2. The Union Ministry of External Affairs has appointed Water
and Power Supply Consultancy Services (WAPCOS), a Central Government
undertaking, to prepare a detailed project report (DPR) on the
proposed 870 MW Punatsangchu hydroelectric power project in Bhutan.
The DPR
scheduled to be prepared before January 2006, will be the first step
before India decides on financing the same at an estimated cost of
$813 million. It may be mentioned that India and Bhutan had entered
into a memorandum of understanding regarding Phunatsangchu following
a request for investment from the King of Bhutan, Jigme Singye
Wangchuck, during his visit to India in September 2003. Apart
from Phunatsangchu, the King had also requested India to take up 360
MW Mangdechhu project requiring an investment of $349 million.
The single
largest investing country in the power sector in Bhutan, India has
already commissioned the 336 MW Chukha Hydro Project Corporation
(1988) and 45 MW Kurichhu hydroelectric project costing about $319
million.
The
Bhutanese power sector, now contributing about 45 per cent of gross
revenue of Bhutan, would be further boosted with the commissioning
of the 1020 MW Tala hydroelectric project (THPA) in 2004-05. The
revised estimated cost of the project, which had suffered due to
landslide, had gone up to $750 million from $600 million. India
offered 60 per cent of the project cost as grant and the balance as
soft loan to Bhutan.
The
investment in the Tala project had followed the incorporation of
Tala-Delhi Transmission Ltd (TDTL), the first ever public-private
partnership in power transmission in India. TDTL is a joint venture
between the Tatas and the Power Grid Corporation of India (PGCIL).
Apart from India, Austria had also committed investment in hydel
power generation in Bhutan.
The Phase-I
(22 MW) of Basochu hydro power project has already been commissioned
through bilateral assistance and soft loan finance by the Austrian
Government. Phase-II (40 MW) of the same project is now under
implementation.
Pursuing a
policy to tap the full potential of 30,000 MW hydel power, Bhutan
had already witnessed a positive balance of payment position with
India since 1996 due to export of power.
"Water is to us what oil is to Arab," the Bhutanese King told the
Indian media during his last visit.
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