BHUTAN POWER CORPORATION LIMITED AN OVERVIEW
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1 BHUTAN POWER CORPORATION LIMITED AN OVERVIEW Presentation to Delegates for SARI/Energy- Executive Peer Exchange to Bhutan October 29, 2007 Thimphu : Bhutan
2 HYDRO POWER SECTOR AND THE BHUTANESE ECONOMY Over 80% generation exported to India Contributes ~ about 45% of annual revenues to Royal Government of Bhutan 20% internal consumption 60,000 consumers ~70% to industries ~30% for domestic Per capita electricity consumption 980 units 52% Rural electrification coverage Peak load of 130 MW 2
3 BHUTAN S ENERGY PROFILE Basically all hydro based Hydro Potential - 30,000 MW 1967 First Hydropower Station of 360 kw at Thimphu Present Hydro capacity 1488 MW (constitutes 5% of hydropower potential) Others Diesel 17 MW Solar/Wind/Biomass (negligible) 3
4 ENERGY TRADE WITH INDIA Exports Chhukha 336 MW Plant Nu per unit/5.00 US cents per unit Kurichhu 60 MW Plant Nu per unit/4.375 US cents per unit Tala 1020 MW Plant Nu per unit/4.5 US cents Imports at LV Export Tariff +(plus) wheeling charges in India 4
5 Institutional Setup of the Power Sector of Bhutan Ministry of Economic Affairs Generation Companies (GENCOS) Department of Energy (DOE) Transmission & Distribution (T&D) CHPC BHPC KHPC PCD HMSD* RED Bhutan Power Corporation Limited (BPC) Project Authority BEA THPA DHPA * Flood Management 5
6 UNBUNDLING OF THE ERSTWHILE DEPARTMENT OF POWER DOP BPC DOE BEA BPC was created from the erstwhile Department of Power under the Ministry of Trade & Industry. It was launched as a public utility company on 1 July
7 FUNCTIONS OF THE DEPARTMENT OF ENERGY Formulation of Macro-Level National Plans, Policies, Programmes & Projects and coordination of energy sector activities. Provide technical advice/support to RGoB on energy issues Monitoring & Evaluation of programmes and projects Approval of power system expansion plans and Technoeconomic & budgetary clearance of large energy projects and technical sanction of small RGOB funded Projects. Electricity Regulations (Bhutan Electricity Authority) 7
8 VISION OF BPC To be Customer Centric, Commercially Viable and Socially Conscious, and to contribute to the Socioeconomic Development of the Country. 8
9 MISSION AND GOAL OF BPC To Transmit, Distribute and Supply Electricity within the Country, Wheel Electricity for Export, and Practice Good Corporate Governance. 9
10 ORGANOGRAM Board of Directors Office of Managing Director Engineering & Design Division Security Div. Internal Audit HR & Adm Dept Finance & Accounts Dept Procurement Serv Dept Dist & Cust Services Dept Rural Electr Dept Dev. & Constr. Dept Trans. Dept 10
11 OBJECTIVES OF BPC 1. To provide best services to the customers 2. To advocate social and environmental responsibility 3. To transmit, distribute and supply electricity in a safe, reliable and efficient manner 4. To wheel electricity within the country and for export reliably and efficiently 5. To practice prudent financial management and corporate governance 6. To build professionalism and inspire enthusiasm for work 11
12 ELECTRICITY TARIFF OF BPC Exports to India- BPC wheels export power for generating stations at Nu per unit ( US cents per unit) Domestic- Category Consumption Tariff I (LV Domestic Customers) Block 1 (Lifeline) 0-80 kwh/month Nu 0.75/kWh Block kwh/month Nu 1.25/kWh Block 3 LV Bulk Customers Above 301 kwh/month Nu 1.55/kWh Nu 1.55/kWh II MV Consumers (6.6/11/33 kv) Demand Charge Nu 1.30/kWh Nu65/kW/month III HV Consumers (66kV & above) Demand Charge Nu 1.29/kWh Nu 65/KW/month 12
13 POWER TRANSMISSION SYSTEM OF BHUTAN Length of 400 kv D/C lines 74 km Length of 220 kv D/C lines 41 km Length of 220 kv S/C line 134 km Length of 132 kv line 300 km Length of 66 kv line 249 km Length of 66 kv D/C line 6 km Total transmission line length 804 km 400/220 kv Interconnecting substation 1 No. 220 kv substations 2 Nos. 132kV sub stations 7 Nos. 66kV substations 11 Nos. Total HV substations 21 Nos. 13
14 POWER DISTRIBUTION SYSTEM Existing System (As of June, 2007) Length of 33 kv lines km Length of 11 kv lines km Length of 6.6 kv lines km Length of LT line km Length of HT lines km Total distribution line length km Total distribution substations 1654 Nos. 14
15 NETWORK EXPANSION DURING 9th FYP ( ) High Voltage System 400kV D/C Tala Pagli (till border) 49 km 400kV D/C Tala Khogla (till border) 25 km 132kV S/C Tintibi -Yurmoo line 33 km 66 kv S/C Yurmoo - Bumthang line 35 km 33 kv S/C Yurmoo -Trongsa line 36 km 132kV S/C Deothang - Rangia line 58 km 220 kv S/C Rurichu Semtokha line 35 km 220kV S/C Rurichu Tsirang line 48 km 33kV D/C Tsirang Dagana line 35 km 220kV Quadruple Malbase Pasakha line 4 km 220kV Malbase - Gomtu/Samtse line 57 km 220kV Tsirang Gelephu line 45 km Low Voltage System On-going RE and Urban Expansion 15
16 NETWORK EXPANSION DURING 9th FYP ( ) 400kV s/s, Malbase 1 132kV s/s, Trongsa 1 66kV s/s, Bumthang 1 220kV s/s, Malbase 1 220kV s/s, Rurichu 1 66kV s/s, Tsirang 1 Under RE/Urban Expansion 16
17 NETWORK EXPANSION IN PIPELINE High Voltage System 220kV Malbase - Gomtu/Samtse line 57 km 220kV Tsirang Gelephu line 45 km 220kV D/C Mangdechu Punatshangchu-I line 110 km 400kV D/C Mangdechu Jigmeling 85 km Low Voltage System On-going RE and Urban Expansion Hereinafter, BPC shall carry out HV infrastructure construction for various hydropower projects under funding by the respective projects. 17
18 POWER INFRASTRUCTURE OF BHUTAN Now 132 kv This section not likely to come up during 9 th FYP 18
19 POWER INFRASTRUCTURE OF BHUTAN 19
20 CHALLENGES TO BPC High costs of delivery and low tariffs Rural Electrification US$ 2,000 per household excluding generation and transmission costs Tariff average Nu per unit/2.875 US cents (against LRMC of Nu. 2.30/5.75 US cents now LRMC higher with recent increase in export tariff from Nu. 1.50/3.75 US cents to Nu. 2.00/US cents 5) Conflict between social (RE and grid security) and commercial mandates 20
21 FUTURE POWER SECTOR SCENARIO OF BHUTAN Other Hydropower Projects in pipeline and Power System Master Plan 670 MW Digala 485 MW Kholongchhu Others Reservoir schemes but deferred for now Sunkosh (DPR 4000 MW) Wangchhu (DPR MW) Bunakha (DPR MW) Vision 2020 Electricity for All Associated National Grid Establishment of NLDC RE Master Plan 21
22 FUTURE POWER SECTOR SCENARIO OF BHUTAN Addition of 3,000 MW by ,095 MW Punatsangchhu-I o DPR completed o Construction to start in MW Punatsangchhu-II 670 MW Mangdechhu 22
23 FUTURE POWER SECTOR SCENARIO OF BHUTAN Power System Master Plan RE Master Plan Integrated Energy Management Master Plan 23
24 THANK YOU 24
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