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International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE, Chhukha HydroPower Plant, Druk Green 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 SE,

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Page 1: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

International Conference on SAARC@25

Co-operation in the Hydropower Sector between Bhutan and India

New Delhi, 16-17th September 2010

Rinzin DorjiSE, Chhukha HydroPower Plant, Druk Green

Druk Green Power Corporation Limited

A Royal Government of Bhutan Undertaking

Page 2: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

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

Page 3: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

INDO–BHUTAN HYDRO POWER OPPORTUNITIES

oArea – 38,394 sq kmoPopulation ~ 650,000oAltitude range from 100 – above 7500 m above mean sea leveloForest cover - 72%

Page 4: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

Dept of EnergyPlanning, policy, coordination, specialist functions

Bhutan Electricity AuthorityRegulatory functions

Bhutan Power Corporation

-Tala Hydropower Plant-Chhukha Hydropower Plant-Kurichhu Hydropower Plant-Basochhu Hydropower Plant

MINISTRY OF ECONOMIC AFFAIRS

UNDER CONSTRUCTION

Dept of Trade

Fossil fuelsDept of

Industries

Druk Holding & Investments

Puna-I HP AuthorityPuna-II/Mangdechhu

DrukGreen

Dagachhu Hydro Power Corporation

MINISTRY OF

FINANCE

Other Shareholders-Tata Power Company-NPPF

ORGANIZATIONAL STRUCTURE

PPP Projects (Nikachhu,Gamri, and others )

Page 5: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

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

Page 6: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

MISSIONSMission 1 : Effectively and efficiently manage

hydropower plants, and maximize returnsMission 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

ROLE OF DRUK GREEN POWER CORPORATION LIMITED

Page 7: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

POTENTIAL FOR HYDROPOWER DEVELOPMENT

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

Page 8: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

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

Page 9: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

Sl.No. River-basins Area (km2)

Schemes Potential (MW)

Energy (GWh)

1 Amochhu (Basin I) 2,400 6 2,060 9,6562 Wangchhu (Basin I) 4,689 10 2,740 11,1393 Punatsangchhu (Basin II) 10,355 19 8,099 25,4954 Mangdechhu/Manas-West (Basin III) 7,392 17 3,889 18,3225 Drangmechhu/Manas-East (Basin III) 9,207 20 6,692 33,4226 Jaldhaka, Mau, Nyeraamari, Dhansiri 2,750 4 280 1,2137 Others 1,601

Total 38,394 76 23,760 99,247

POTENTIAL FOR HYDROPOWER DEVELOPMENT

Page 10: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

CURRENT DEVELOPED HYDROPOWER POTENTIAL

Developed Hydropower Potential

Installed hydropower capacity of 1,489 MW constitutes , 5% of total potential

Diesel generation – 17 MW

Page 11: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

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

Page 12: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

Energy Generation, Domestic Consumption and Export to India

PERFORMANCE OF THE GENERATING UTILITY

Page 13: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

Bhutan Power System (2009)

India

IMPACT OF HYDROPOWER TO BHUTAN’S SOCIO-ECONOMIC DEVELOPMENT

Page 14: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

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)

Page 15: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

HYDROPOWER PROJECTS UNDER CONSTRUCTION

Power PlantInstalled

Capacity (MW) Remarks1Punatshangchhu-I 1,200 GOI financing

Total 1,200

Dam Works of Punatshangchhu-I

Excavation of Main Access Tunnel to Power House

Page 16: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

HYDROPOWER PROJECTS (Cleared for Construction)

Power PlantInstalled Capacity

(MW)1Punatshangchhu-II 990 2Mangdechhu 720

Total 1,710

View of Punatshangchhu-II

View of Mangdechhu Dam Site

Page 17: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

OTHER HYDROPOWER DEVELOPMENT PROJECTS (UNDER 10,000 MW BY 2020 PLANS)

Power PlantInstalled

Capacity (MW) Remarks1Sunkosh Reservoir 4,060 DPR2 Kuri-Gongri 1,800 DPR3 Amochhu Reservoir 620 DPR4 Kholongchhu 486 DPR5 Chamkharchhu-I 670 DPR6 Wangchhu Reservoir 900 DPR7 Bunakha Reservoir 180 DPR

Total 8,716

Construction of all projects expected to be started within 1-3 years

Page 18: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR

Power PlantInstalled Capacity

(MW) Remarks1Punatshangchhu-I 1,200 Under Construction

2 Punatshangchhu-II 990 Construction by 20103 Mangdechhu 720 Construction by 20104 Sunkosh Reservoir 4,060 DPR5 Kuri-Gongri 1,800 DPR6 Amochhu Reservoir 620 DPR7 Kholongchhu 486 DPR8 Chamkharchhu-I 670 DPR9 Wangchhu Reservoir 900 DPR

10 Bunakha Reservoir 180 DPRTotal 11,626 -

Hydropower Projects under 10,000 MW by 2020 with Government of India Assistance

Page 19: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

1Dagachhu 114 Under Construction2Augmentation of Tala FS3 Nikachhu 208 FS4 Begana 20 FS5 Druk Bindu 12 PFS6 Gamri 80 PFS7 Aiechhu 70 PFS

Total 504

OTHER HYDROPOWER PROJECTS OF ROYAL GOVERNMENT OF BHUTAN

Augmentation of Chhukha Plant

Dagachhu Surge Shaft Works

Page 20: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

Agencies of the Government of India involved in Bhutan’s Hydropower Development & transmission systems

OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR

Page 21: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

Major private sector companies involved in hydropower development & transmission systems

OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR

Page 22: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

Augmentation of Chhukha Plant

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

OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR

Page 23: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

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

OPPORTUNITIES OF DOING BUSINESS IN BHUTAN’S HYDROPOWER SECTOR

Page 24: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

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

INDO-BHUTAN HYDRO POWER OPPORTUNITIES

Page 25: International Conference on SAARC@25 Co-operation in the Hydropower Sector between Bhutan and India New Delhi, 16-17 th September 2010 Rinzin Dorji SE,

[email protected]

www.drukgreen.bt

Thank You