DGPC''s business model is built on a foundation of hydropower assets for an effective and optimal utilisation of the abundant water resources to develop water-to-wire expertise amongst the Bhutanese, and to lead in accelerating hydropower development on its own or through joint ventures in keeping with the 2021 Sustainable Hydropower Development Policy. Thus, DGPC has ventured into the construction of new hydropower projects, and the establishment of subsidiary companies to provide ancillary services to support its mandates.
Hydropower is more than just energy for Bhutan—it''s a cornerstone of national strategy and economic resilience. With 2,450 MW of hydropower installed capacity, Bhutan''s Renewable Energy Development Roadmap 2024 outlines ambitious plans to accelerate the development of hydropower and solar projects.
Bhutan''s peak demand to reach 4,500 MW
Envisaging to add 15,000 MW in hydro generation capacity and a further 5,000 MW in solar generation capacity
Bhutan revels in achieving 2,450 MW of hydropower generation capacity and about 3 MW solar and wind energy. This diverse energy mix supports a greener future while preserving Bhutan’s natural splendour.
Reached electricity to every home with 99.9% grid connectivity
Renewable energy in Bhutan is the use of renewable energy for electricity generation in Bhutan. The renewable energy sources include hydropower.[1]
Bhutan''s commitment to renewable energy started in 1980. Six years later, the first hydropower plant opened in Chukha, followed by a plant in Kurichhu in 2001. Soon after that two more plants opened in Basochhu in 2005 and Tala in 2009.[3] At COP 15 in 2009 (2009 United Nations Climate Change Conference), Bhutan made its first promise to remain completely carbon neutral;[4] they reaffirmed this promise at COP 21 in 2015 (2015 United Nations Climate Change Conference).[4]
Bhutan has significant potential for hydropower, estimated at around 30,000 MW, of which 23,760 MW has been identified as economically feasible.[5] As of 2016, Bhutan''s installed hydropower capacity is 1,615 MW.[5]
On-grid hydropower is Bhutan''s main energy source.[6] In mountainous rural areas where grid extension is not feasible, off-grid renewable energy has been used to improve access to electricity.[6] Around 4,000 households reside in these remote rural areas.[6]
Bhutan''s first step into renewable energy was hydroelectric power. They first started by opening the first hydroelectric power plant in Chukha in 1986. The country now has more plants open: Kurichhu (2001), Basochhu (2005), and Tala (2009). The Mangdechhu hydropower project, a 720 MW run-of-river power plant, was inaugurated in 2019.[7][8][9]
Currently approximately 70% of the hydroelectric power Bhutan produces is exported to India saving 4.4 million tons of CO2 per year.[10] Despite efforts to expand the types of renewable energy used in Bhutan, hydroelectric power is still the leading source of clean energy in the nation.[11]
After the 2015 United Nations Climate Change Conference, Bhutan has been moving towards other forms of renewable energy so as to decrease their reliance on hydroelectric power during winter and dry months.[11] Bhutan has increased their focus specifically in the areas of: windmills, biogas plants, solar power, and smaller hydropower plants.
The initial plan was to install 24 wind turbines, however installation was halted after only two turbines due to citizens raising concerns about possible noise pollution.[11]
Two wind turbines in Rubesa, Wangdue Phodrang, were commissioned in January 2016.[12] These produce a combined 600 kilowatts (KW) of power, sufficient for 100 households.[13]
In 2017, Bhutan''s Department of Renewable Energy identified areas near Nyizergang Lhakhang and Gase Tshogom gewog as potential sites for developing wind energy projects.[13]
Bhutan had a plan to install a 30 MW solar energy plant in Shingkhar in the Bumthang district.[11] But it got cancelled, and currently, a plant is under construction at Yongtru village in Sephu.[14]
There have also been approximately 13,500 stoves and 2,800 biogas plants installed throughout the country.[11]
In an effort to further spread the use of renewable energy and to decrease the country''s carbon emissions, Bhutan also provides free electricity to rural farmers; this reduces the amount of fires/gas they use to do their farm work. The government also subsidizes LED light bulbs and electric vehicles.[4]
Currently Bhutan''s clean energy exports offset approximately 6 million tons of carbon dioxide.
In a 2016 TED Talk, the Bhutanese Prime Minister Tshering Tobgay spoke about how Bhutan is the only country able to claim the title of "carbon negative." This means that though the nation produces about 2.2 million tons of CO2, the forests offset more than 4 million tons of CO2. They are able to do this because over 72% of their country is under the cover of their forests, a constitutional mandate of the nation.[4]
At the 2009 United Nations Climate Change Conference, Bhutan made their first promise to remain carbon neutral; they again made this promise at the 2015 United Nations Climate Change Conference. As of 2016, the clean energy Bhutan exported offset roughly 6 million tons of CO2; it is their goal to export enough clean energy to offset 17 million tons of carbon dioxide by 2020. In his 2016 TED Talk, Prime Minister Tshering Tobgay stated that if Bhutan was able to harness even half of the potential hydroelectric power, they would be able to offset roughly 50 million tons of carbon dioxide, more than the carbon dioxide that New York City produces in one year.[4]
New Delhi: Tata Power Company Ltd has entered into a strategic partnership with Druk Green Power Corporation Ltd (DGPC) to develop at least 5,000 MW of clean energy generation capacity in Bhutan.
DGPC is a subsidiary of Druk Holding and Investments Ltd, Bhutan''s government-owned holding company with investments across sectors such as manufacturing, energy, natural resources, financial services, and communication.
"Tata Power''s partnership with Druk Green Power Corporation reinforces our credentials as the most preferred clean energy partner in the region. Together, we are building 5,000 MW of clean energy capacity that will help harness Bhutan''s hydropower potential and support both countries'' growing energy demands with reliable and round-the-clock clean energy supply. Together we are shaping a new energy era," Praveer Sinha, chief executive and managing director, Tata Power, said in a statement.
The development is in line with Bhutan''s vision for its energy sector, which is to raise its overall power generation capacity to 25,000 MW by 2040, from 2,300 MW currently, for its energy security and regional energy integration, Tata Power said. The landlocked country plans to achieve this target through diversification in its energy portfolio beyond traditional hydropower, which would include solar and geothermal energy.
Also read | Renewables biz may recharge Tata Power''s growth
"This will extend to diversifying project structuring and financing through such strategic partnerships. With the support of the Royal Government of Bhutan and the government of India, this marks the largest partnership between two of the leading power companies of the two nations in Asia''s clean energy sector," Tata Power said, adding that the partnership will help unleash Bhutan''s great potential for hydropower and its important role in ensuring energy security in the region.
The projects to be developed through the partnership would include 4,500 MW of hydropower comprising the 1,125 MW Dorjilung hydroelectric project; 740 MW Gongri Reservoir; 1,800 MW Jeri pumped storage project and the 364 MW Chamkharchhu IV. Another 500 MW of solar projects will be developed by Tata Power Renewable Energy Ltd (TPREL), a subsidiary of Tata Power.
Tata Power recently acquired a 40% stake for ₹8.30 billion in the 600 MW Khorlochhu Hydroelectric Project where an investment of over ₹69 billion will be made to develop the project.
The memorandum of understanding (MoU) was signed on Tuesday at Thimphu between Dasho Chhewang Rinzin, MD, DGPC, and Praveer Sinha in the presence of Bhutanese prime minister Dasho Tshering Tobgay and Tata Sons chairman N. Chandrasekaran.
Tata Power has had a long-standing relationship with DGPC going back to 2008 when the two companies joined hands to successfully develop the 126 MW Dagachhu Hydropower Plant as the first public-private partnership in Bhutan''s hydropower sector.
Tata Power also has a 1,200-km Tala transmission line that evacuates clean power from Bhutan to India.
Also read | India''s clean energy sector sees surge in FDI while other sectoral investments decline
Dasho Chhewang Rinzin, MD, DGPC, said: "This strategic partnership with Tata Power is in keeping with Bhutan''s aspirations to maximize benefits to the people of Bhutan through fast-tracking the harnessing of its huge renewable energy resources for its economic development and long-term energy security. Bhutan places a lot of confidence in Tata Power and the partnership to deliver on these expectations."
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