Back to Bhutan main page


Vision

To be the lead player in South Asia in development of hydropower in terms of technology and sustainability, and to achieve the goals set out in the Vision 2020 document.

Mission

To provide adequate, safe and reliable electricity through improvement and expansion of transmission and distribution networks, including sustainable development of environment-friendly hydro projects, and continue to be the backbone of the Bhutanese economy.

Objectives/Goals
1. To meet electrical energy demand of the domestic consumers;
2. To foster sustainable and environment-friendly development of hydropower generation;
3. To accelerate the pace of development of hydropower for export to generate revenue and thereby enhance the contribution of the electricity sector to the GDP;
4. To improve quality of life and alleviate poverty, especially in rural areas, by providing electricity as stimulant for socio-economic development;
5. To achieve automation in generation, transmission and distribution of electricity, and to increase efficiency and reliability in operations and management of the systems;
6. To strengthen institutional and professional capacity of the implementing agency and its staff; and
7. To create an enabling environment, including development of policy and legal framework for the development and utilization of hydropower, including private sector participation.

Strategies

1.1 Adopt a programmatic approach in formulation of plans for sectoral development and rolling plans for fund-flow and utilization;

1.2 Integrated approach and coordination with other sectors in infrastructure development planning, principles of cost sharing (counterpart funding for local costs), sustainable development, and environmental-friendly implementation methodologies;

2.1 Develop integrated rural electrification plans and programmes, including the Dzongkhag-wise renewable energy master plan for 100 per cent electrification by 2020, and the five-year renewable energy plan, including techno-economic feasibility study for phased development and electrification;

2.2 Dzongkhag based electricity supply sections will be involved in identification and cost-effective investment decisions for rural electrification. Techno-economic feasibility studies of proposals submitted by Dzongkhags for final selection and identification of villages or households are to be conducted in consultation with funding agencies and Dzongkhags before implementation;

2.3 Construction of small/mini hydropower project for supply of electricity to isolated and remote areas;

2.4 Undertake most construction activities, including rural electrification, through private sector contracts;

3. Improvement and upgrading of existing electricity supply infrastructure and facilities in urban and rural areas to cater to increased demand and to improve reliability, safety and overall system efficiency through change management;

4.1. Feasibility studies for investments in hydropower projects for sustainable development and cost-effective investment of resources, including scheduling of development. These will include preparation of an energy master plan, a water resources development master plan, and a hydropower master plan inventory update, feasibility studies of about 2,000 hydropower projects; feasibility and project preparatory technical assistance, etc.;

4.2. Project promotion, fund mobilization and power purchase agreements arrangement, including assistance in mobilization of funds for already studied hydropower projects;

4.3. Development of transmission grids to interconnect regions to ensure reliability of power supply within Bhutan as well as for export;

4.4. Proper operations, maintenance and management of existing power infrastructure, and available resources for provision of quality services to consumers, including power trading or business through restructured generation, transmission and distribution corporations and the Electricity Authority;

4.5. Creation of central or independent load dispatch centres for optimum operation and management of resources through proper coordination and scheduling;

5.1 Promotion of hydropower as a commodity for sale locally and for export, based on market conditions and development of suitable tariff system;

5.2 Study of market opportunities, strengthening marketing capability, and establishment of infrastructure facilities and mechanisms for export;

5.3 Improve domestic revenue collection through demand side management techniques and improved technology for reduction of losses;

6.1. Adopt state of the art technology (for leap-frog catch), so that electricity generation and transmission become efficient and reliable (minimize man-made errors, do not re-invent the wheel);

6.2. Promote automation in hydropower generation, transmission and distribution for efficient and reliable services (use of SCADA, benefit of value addition in fibre optic communication, etc.);

7.1 Human resources development through skills and training development programme and projects, strengthening of the Human Resources Department, etc.;

7.2 Formulation and establishment of hydropower policy guidelines including creation of transparent regulatory framework to encourage growth of the electricity sector and for possible participation of independent power producers (IPP’s) and operators (private sector participation).
|
Energy Resources Section, Environment and Development Division,
United Nations Economic and Social Commission for Asia and the Pacific