Should Bhutan diversify its energy sources?

In the face of climate change and the need for enhanced energy security, the business case for Bhutan to diversify its energy sources, especially by tapping into alternative renewable energy, is compelling. Bhutan is yet to realize its full potential in terms of renewable energy.

How can energy pricing improve energy eficiency in Bhutan?

Reforms to energy pricing can help level the playing field for renewable energy technologies, thus incentivising their uptake in both on-grid and of-grid settings. In the specific case of Bhutan, improving energy eficiency is a fundamental and cost-efective first step towards integration of renewables in all sectors.

How much power does Bhutan have?

Bhutan’s installed power generation capacity in 2017 was 1.6 gigawatts (GW), representing only 6% of its techno-economic feasible hydropower potential. Total electricity generation in 2017 was estimated at 7 729 gigawatt-hours (GWh), which far exceeds the domestic electricity requirement of 2 243 GWh/year (DRE–MOEA, 2016a).

Why is energy consumption growing in Bhutan?

Energy consumption in Bhutan has been growing rapidly (with a CAGR of 5.49% since 2005). Most of this demand – especially in the transport and industrial sectors – is met through imported fossil fuels, which represent a significant and growing economic burden.

How can Bhutan improve its national institutional capacity?

Bhutan’s neighbouring countries, such as Bangladesh, China, India and Nepal, have extensive public-sector experience in renewable energy deployment. By leveraging their strengths and experience, Bhutan can improve its national institutional capacities.

How many power companies are there in Bhutan?

There are two major power utility companies in Bhutan: the Druk Green Power Corporation Limited (DGPC), and the Bhutan Power Corporation (BPC). The state-owned Bhutan Power Corporation (BPC) holds the main responsibility for transmitting and distributing electricity (ADB, n.d.).