Bhutan Power Corporation Limited

Source – Kuensel: BPC considers energy banking, small hydropower plants, import, thermal plants and load shedding to meet shortage

9 February, 2010 – Bhutan, rich in hydropower could face power shortage, up to 20 MW, by the late winter months of 2010 and early 2011.

This, according to Bhutan Power corporation (BPC), is because, for the first time since the conception of Chukha, Bhutan’s total winter generation at 288 MW will not be able to meet the expected demand of 308 MW.

“The winter demand has already touched 237 MW and, by the end of this year, it will increase because of the 42 MW demand from Dungsam cement and two BCCL factories, 12 MW from Punatsangchu I and II, Dagachu and Mangdechu construction, 10 MW from domestic users and 8 MW from rural electrification,” said BPC managing director, Dasho Bharat Tamang. “The shortages are expected to get worse in the coming years with even the best-case scenarios showing gaps.”

Of the current 237 MW demand, only 80 MW is from domestic users and the rest is from industries in the south. In 2008, the peak demand in winter was 187 MW, while in 2007 it was 157 MW.

However, to meet this shortage, BPC has already drawn up plans and considering various options.

“The first and immediate option is to store water during non peak hours in winter during which power can be imported from India and then export power at peak hours which is 7 to 9 am and 6 to 8 pm,” said BPC senior engineer, Nawang Norbu. Through this BPC officials expect to increase the current minimum production of 288 MW to 342 MW during peak hour production, still making Bhutan a net exporter.

However, the worst-case scenario projection for the 2010 winter already shows a projected demand of 365.3 MW, which is 23 MW above the peak hour production.

“Our first option in the long run is energy banking, where we can export some power free of tariff during summer to an energy bank like power transmission corporation (PTC) of India and then take it back in winter,” said Dasho Bharat Tamang.

The MD in a recent visit to Delhi met with PTC officials, who said that the exchange of 100 to 200 MW would be possible with Indian states like Haryana and Punjab, who have huger requirements in summer but excess generation in winter. The second step already in the offing is constructing smaller hydro projects that take up shorter time.

DGPC is studying the Nu 510 mn diversion of the Taktogomchu stream to Tala dam, which could give 10-20 MW of additional power. “We hope to get all clearances by 2010 and finish it within 18 months to two year,” said DGPC MD, Dasho Chhewang Rinzin. DGPC is carrying out feasibility studies for 208 MW Nikachu and 100 MW Gamri, whose constructions are expected to be complete by 2015 and 2016. Nikachu may be able to add 40 MW in the lean winter months.

BPC is studying the construction of a 20 MW plat at Begana hydropower plant and 13 MW Bindu hydropower plant in Samtse.

Big industries are also being encouraged to come up with their own captive power plants.

BPC is also examining industrial load reduction option, where in case of a shortage, industries would be allowed to take only 63 percent of their contracted demand. Part of this strategy is to also introduce higher tariff for industries during peak hours in the winter months to help reduce demand.

Another option that BPC has considered are two captive thermal power plants of 100 MW run on gas or coal based either in Pasakha or Samdrupjongkhar. “Bhutan is carbon neutral country and we’d as much as possible like to avoid this option”, said Dasho Bharat Tamang.

He said that the last option would be load shedding where industries would be first on the list. Load shedding is the cutting off of power for a certain stretch of time common in the region except for Bhutan.

By Tenzing Lamsang