DATA SOURCE: Department of Energy,
Ministry of Trade and Industry, Bhutan, 2002
 
Energy Sector Development

Status: hydroelectric power, biomass energy, fossil fuels
Tables: Import/export of electricity;
Capacity by ownership; Access to electricity;
Electricity tarrif
Electric Power Sector Development

Review of the Eighth Five-Year Plan

The Ninth Five-Year Plan
o Vision, mission, goals/objectives, strategies
o Programmes and budget outlay
Financial and Manpower Requirements
o Financing mechanism
o Implementation strategy
o Monitoring and evaluation mechanism
Stakeholders in Electric Power Development  

List of stakeholders




Adequate energy input is essential for all socio-economic development activities. While primary energy needs of most of the Bhutanese population are being met from biomass, modern forms of commercial energy such as electricity and fossil fuels (petrol, diesel, kerosene, liquefied
Import/Export of electricity (GWh)
1999
2000
2001
Export
1,279
1,608
1,328
Import
31
27
62
petroleum gas) are also increasingly used and in demand. Most electricity in Bhutan is generated from local hydropower plants. Today, about 75 per cent of the electricity is exported.
Capacity by ownership (MW)
 
1999
2000
2001
Publicly owned public utilities
350
354
369
Privately owned public utilities
2
2
3
Self-generating industries
5
5
5
Total
357
360
376

Access to electricity
 
1999
2000
2001
Estimated urban population (thousands)
260
Estimated rural population (thousands)
439
Estimated urban population with access (thousands)
15
16
17
Estimated rural population with access (thousands)
11
12
14
Number of electrified villages
443
552
646
Number of not electrified villages
n/a
n/a
n/a
Notes:

Urban and rural population estimates are inconsistent with United Nations official population figures.

The figures for estimated urban and rural population with access to electricity are based on the number of consumers.

An electrified village: "A group of rural households excluding institutions, industries and schools".
Electricity tariff by consumer groups, per kWh
(national currency, Ngultrum)
 
1999
2000
2001
Rural household
0.50
0.50
0.50
Urban household
0.50
0.70
0.70/0.80
Commerce
0.60
0.70
0.70/0.80
Industry
0.60
0.70
0.70/0.80
Notes:

Price changed from Nu. 0.70 to Nu. 0.80 on 1 July 2001 for urban, commercial and industrial consumers.

Industrial consumers include agro-, small-scale, and major industries.



Bhutan is endowed by nature with a large hydropower potential, estimated to exceed 30,000 MW. By the end of the 8th Five Year Plan (8FYP) period, only about 1.42 per cent of that potential would be harnessed.

During the 8FYP, the sector has contributed about 45 per cent of Government revenue earnings against 25 per cent during the 7th Five Year Plan period. The sector is being recognized as a core economic sector and the backbone of the Bhutanese economy. Annual domestic electricity consumption has increased by 9.53 per cent on average over the last five years. Demand has increased to over 90 MW and 532 Million Units (MU) per annum in the year 2000, from 70 MW and 338 MU in the year 1995. The hydroelectric generation capacity, transmission and distribution networks have expanded, catering to more than 35,000 electricity consumers. The commissioning of the 60 MW Kurichu Hydroelectric Project, the Basochu Upper stage of 22.2 MW and the Kellungchu Micro hydro of 200 kW along with the development of the Eastern Transmission grid during the 8FYP, augmented the overall power supply infrastructures capacity.

Rural Electrification has been an important aspect of hydropower development. More than 30 per cent of Bhutanese households or gungs have access to electricity. During the 8FYP, 82.4 MW hydropower has been added to the existing power system.


Biomass consisting of mainly firewood meets primary energy demand of the population, of which more than 70 per cent live in rural areas. Firewood is used for cooking, heating and in some areas also for lighting. It is estimated that Bhutan has one of the highest per capita consumptions of firewood in the world. Efforts are being made to reduce demand and sustain the growth rate by providing alternatives such as electricity through an extensive rural electrification programme. Sustainable supply and efficient utilization of biomass will be an alternative strategy in future.



Most fossil fuels (petroleum products) used in Bhutan are imported. The demand has been increasing at an alarming rate, especially in the transport sector. During the years 1999-2000, 26,844 kilolitres of diesel, 6,520 kilolitres of petrol, 15,000 litres of kerosene, 3,000 tons of liquefied petroleum gas (LPG) and 890 kilolitres of aviation turbine fuel was imported. Kerosene is used mostly for lighting purposes in the non-electrified areas.
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Energy Resources Section, Environment and Development Division,
United Nations Economic and Social Commission for Asia and the Pacific