The Dams, Rivers & People overview of Bhutan here, mainly from media reports from Bhutan, highlights the failed hydropower goal of adding 10000 MW capacity by 2020. The fate of the 1200 MW Punatsangchu I remains uncertain, yet to be decided if the dam will be abandoned for barrage. The flood disaster in July 2023 that washed away 32 MW Yungichhu HEP and killed about 23 people was possibly sign of things to come, as shown by the washing away of the 1200 MW Teesta 3 project in neighbouring Sikkim in early Oct 2023 with GLOF. On positive side, Bhutan has decided to go for Solar and Wind. The Nikachhu HEP is likely to be commissioned soon, adding 118 MW to Bhutan’s installed capacity.
But let us begin with a postive story of a woman River Guardian.
Guardians of the river: Tandin Wangmo’s quest to save the Golden Mahseer Tandin Wangmo (24) is an example of Guardian of a village. She tries to persuade the people of her village not to kill Golden Mahseer, at least in breeding season, to protect the fish, the river and also birds like the White Bellied Heron. Her village, Jigmechhu is renowned as a famous fishing spot for Mahseer. https://kuenselonline.com/guardians-of-the-river-tandin-wangmos-quest-to-save-the-golden-mahseer/ (Jan 20 2024)
Many killed as floods wash away part of hydropower plant At least seven people were killed and 16 others were missing in Eastern Bhutan after flash floods and landslides triggered by heavy rains washed away a section of a hydroelectric plant on July 20 2023. Rescue and search teams have rushed to the area. Prime Minister Lotay Tshering has arrived at the site and is taking stock of the situation and guiding rescue and search operation.
A section of the 32 MW Yungichhu Hydro Power Project was washed away, but the main part was not hit. Five of the seven killed have been identified. “It is a major disaster,” Bhutanese quoted an unnamed official from Druk Green Power, which is in charge of the plant’s construction, as saying. The missing included project staff. https://www.reuters.com/world/asia-pacific/about-20-missing-bhutan-floods-wash-away-part-hydropower-plant-2023-07-21/ (21 July 2023)
SANDRP Blog July 2023 Bhutan Hydro Project Disaster: 23 Dead and missing At least seven people were killed and 16 others missing in Bhutan after flash floods and landslides triggered by heavy rains washed away a section of a hydroelectric plant on July 20 2023.
They were washed away by the sudden burst at the residential area next to the worksite at Ungar village, according to a press release from the Prime Minister’s Office. Prime Minister Dr Lotay Tshering, who is in Lhuentse, said the devastating flash flood presented one of the biggest loss of lives and properties in recent memory, and shook the core of the nation. https://sandrp.in/2023/07/23/july-2023-bhutan-hydro-project-disaster-23-dead-and-missing/ (23 July 2023)
Dave Petley on Ungar landslide This is clearly a very steep, dissected landscape, with multiple small tributaries feeding into the main channel. This is a classic case for landscape for small slips combining to create a channelised debris flow.
https://blogs.agu.org/landslideblog/2023/07/25/ungar-1/ (25 July 2023)
Failed hydropower goal 15 years ago, Bhutan announced that by 2020 it would be able to produce an additional 10,000 MW hydropower. So far, it is able to generate less than a quarter of this target: total installed capacity is 2,326 MW, up from 1,480 MW in 2008.
The Punatsangchhu II project is nearly finished, and is supposed to start operating in Oct 2024 – almost seven years late. The Punatsangchhu I project was supposed to be completed in 2016 but has been plagued by accidents as a result of slope destabilisation. It has no indicated commissioning date.
Yeshi Dorji, an environmentalist and prominent blogger, said: “We have been misled all along in relation to our hydropower projects. The locations of the projects are wrong – they are too far away from the market; the prefeasibility study and geological investigation was shoddy and amateurish.” the Punatsangchhu I project was supposed to cost Nu 35.15 B (USD 425 M), and now has cost Nu 93.76 B (USD 1.13 B) and is still not online. The Kholongchhu project was originally to cost Nu 33.05 billion (USD 400 million), which has run to Nu 54.82 B (USD 660 M) and is stalled.
Bhutan’s Sustainable Hydropower Development Policy, 2020 emphasises developing green hydrogen with hydropower. It recommends keeping one or two river systems dam-free until and unless existing projects are no longer profitable. https://www.thethirdpole.net/en/energy/bhutan-failed-hydropower-goal-and-geopolitics-of-energy/ (9 March 2023)
No Mega Hydro, Bhutan-Bangladesh Power export? Bhutan’s policy toward investing in mega projects has changed. The policy now is to not take up huge projects given the complexities of building them. We learnt it the hard way. Bhutan and Bangladesh are ready. If India agrees, it can also benefit from the deal, through wheeling charges or lease charges. The dream to light homes in energy-starved Bangladesh with electricity produced in Bhutan is highly possible. In the spirit of the friendship and relations the three countries enjoy today, it opens a window of opportunity to help each other. https://kuenselonline.com/in-the-interest-of-the-region/ (1 April 2023)
10 hydropower projects of 7600 MW capacity in pipeline The Govt informed the Parliament on June 16, 2023 in Budget for the coming year: Under Construction Hydro Projects:
Punatsangchhu I: The long delayed 1,200MW project is still waiting for the decision of the Inter- Governmental Group (IGG) whether to go ahead with the dam or switch to the barrage option. Nu 85.2B has been disbursed. 87.7 percent of the works completed. The IGG was constituted on Jan 16 2023 to review and find a technically safe and cost-effective way forward. The group is expected to submit the report to the two governments in June 2023.
Punatsangchhu II: The 1,020MW project is scheduled to be commissioned in 2024. The project will see cost escalate from Nu 72.9B (March 2015) to about Nu 94.4B. As of April, a total of Nu 79.7B has been disbursed and 94.7 percent of the works completed.
Kholongchhu: Stalled. The government will resume the implementation of the 600MW HEP. The Joint Venture has been closed and the Druk Green Power Corp has bought the shares of SJVNL in Jan 2023. Discussion on debt financing for the project in progress.
118MW Nikachhu HEP: Likely to be the first to be commissioned, scheduled for later this year. The total project cost is estimated at Nu 11.964B. As of April, the project has spent Nu 11.903B and the overall project progress 92.6%.
Three small hydro projects with a total capacity of 104 MW are currently under construction. The projects – 54 MW Burgangchhu, 32 MW Yungichhu, and 18 MW Suchhu, are planned to be commissioned between 2024 and 2025. A total fund requirement of Nu 9.32B.
PLANNED PROJECTS: the 10 projects in pipeline are the 600MW Kholongchhu hydroelectric project, that has come to a halt, the 2,640MW Kuri-Gongri hydroelectric project (Draft DPR presented by WAPCOS in May 2023), 1,125 Dorjilung hydropower project (DPR under preparation, likely to be completed in Dec 2024. The World Bank has been requested to take the lead in coordinating a consortium financing for Dorjilung.), 404MW Nyera Amari hydropower project, 180MW Bunakha reservoir hydroelectric project (DPR completed for both. The ADB has been requested for project structuring to take the project forward.), 2,500MW integrated Gongri reservoir/Jerichhu pumped storage project (Feasibility report being done) and five small hydropower projects of total capacity 181MW (feasibility report ongoing for 90 MW Jomori, 45 MW Gamri-I, 26 (18+8) MW Druk Bindu I&II, and 20 MW Begana). https://kuenselonline.com/10-hydropower-projects-in-pipeline-to-generate-7600mw/ (13 June 2023)
Nikachhu HEP nearly completed Commissioning of the 118 MW Nikachhu Hydropower Project in Trongsa district, Bhutan is scheduled to begin in Jan 2024. According to project management, all the major works have been completed. Druk Green Power Corp said that 98% of the overall work on the project was completed as of Oct 2023.
Work on the Project began in 2016. The project was initially planned to be completed in 2019. The project was estimated to cost nearly BTN12 billion (US$143.9 million). It is using loans from the Asian Development Bank (over BTN4 billion or $48.0 million) and commercial banks in India (more than BTN3 billion or $36.0 million). https://www.hydroreview.com/hydro-industry-news/new-development/druk-green-power-reports-118-mw-nikachhu-hydropower-project-nearly-completed/ (11 Dec. 2023)
The project missed two deadlines so far. “The cost of the project is likely to increase to Nu 13B,” the project official said. The tariff as per Power Purchase Agreement with Power Trading Company India Ltd is Nu 3.30/kWh. https://kuenselonline.com/nikachhu-hydropower-project-commission-by-year-end/ (3 Feb 2023)
DPRs of four HEPs DGPC has completed the preparation of the detailed project reports of four hydro projects including, 90MW Jomori in SamdrupJongkhar, 54MW Gamri I in Trashigang, and 26MW Druk Bindu (I & II) in Samtse. https://kuenselonline.com/more-small-hydropower-projects-begin/ (28 Oct. 2023)
INDIA BHUTAN: Uncertain fate of Punatsangchhu I
Bhutan King visits India Bhutan’s fifth king, Jigme Khesar Namgyel Wangchuck’s visit to India had both substance and subtext. Hydropower, the “cornerstone” of India-Bhutan ties, also received a boost, with the government agreeing to consider Bhutanese requests for expediting long-delayed projects (Sankosh and Punatsangchhu).
https://www.thehindu.com/opinion/editorial/substance-and-subtext-the-hindu-editorial-on-india-bhutan-ties/article66706846.ece (7 April 2023)
Both sides reiterated their commitment to finding a technically sound and cost-effective way forward for Punatsangchhu-I HEP. https://kuenselonline.com/india-bhutan-embark-on-bigger-milestones/ (6 April 2023)
With the revision of the export tariff of the Chukha hydropower by Nu 0.45, the 336MW Chukha hydropower project is estimated to earn an additional revenue of Nu 580M annually. The revision was announced during the visit of His Majesty The King to India from April 3 to 5 2023. The revised tariff is Nu 3 per unit, which represents a 17 percent increase over the earlier tariff of is Nu 2.55 a unit. In 2017, the Chukha power tariff was revised by 30 Chhetrum to Nu 2.55. As per the bilateral agreement the revision due was in January 2021, i.e. every four years. Chukha generates 1,800 million units (MU) of power annually. Overall, Chukha hydropower plant earns revenue of about Nu 4.5B annually out of which Nu 600M is from domestic sales.
Similarly, the Government of India agreed to positively consider Bhutan’s request for sale of power into the Indian Energy Exchange from the 64MW Basochhu hydropower project. The government of Bhutan has requested GoI to buy surplus power from the Basochhu hydropower project plant in the Indian market when there is surplus generation in summer. The project generates 300 MU per annum, out of which it may export 200 MU. https://kuenselonline.com/chukha-export-tariff-revised-by-45-chhetrum-a-unit/ (6 Apr 2023); https://timesofindia.indiatimes.com/india/india-to-step-up-support-for-bhutans-five-year-plan-work-for-expediting-rail-link-project/articleshow/99247914.cms (4 Apr 2023)
Bhutan’s increasing winter power imports While Bhutan’s power generation this year is lower by about 19% even after discounting the reduction due to planned maintenance of Tala HEP, its demand is growing. Bhutan expects to import about 1500 MU of power this month during five month period between Dec 23 and Apr 24, compared to 367 MU during four months last year. Normally Bhutan needs to import electricity during only three months, but that period is increasing. Even after commissioning of 118 MW Nikachu (to provide 23 MW of firm power during winter) and Punatasangchu II (to provide 164 MW during winter) later this year, this trend will continue. Bhutan imports power from spot market of India Energy Exchange at rates generally much higher than its export rate of power. https://www.aninews.in/news/world/asia/bhutan-gearing-up-to-import-electricity-from-india-for-extended-period-report20230928170629/ (28 Sept. 2023)
High Tariff for imported power At Nu 8.35 per unit, Electricity rich Bhutan is paying the highest ever price for electricity imported from India during winter when power generated is not enough to meet domestic demand. The new price is double the price of last winter’s import. Bhutan imported electricity at around Nu 4.50 per unit. The landed import tariffs are much higher than the export tariffs rate of Nu 2.23 per unit for Kurichhu and Tala, Nu 2.55 per unit for Chukha, and Nu 4.12 per unit for Mangdechhu. https://kuenselonline.com/nu-8-35-per-unit-for-imported-electricity/ (9 March 2023)
Progress in development cooperation Hydropower & power related issues were highlighted in Indo Bhutan Joint communique during Bhutan king’s visit to India in early Nov 2023. It was agreed to extend the existing India-Bhutan energy partnership in hydro to non-hydro renewables, such as solar as well as green initiatives for hydrogen and e-mobility. The Indian side assured necessary technical and financial support. https://kuenselonline.com/bhutan-india-move-ahead-in-development-cooperation/ (8 Nov 2023)
Shadow from fallen Sikkim dam on India’s Hydro projects in Bhutan The GLOF devastation in Sikkim has refreshed worries over two of India-assisted, under-construction mega hydropower projects in Bhutan — the 1,200 MW Punatsangchhu Stage-I (Puna-I) and the 1,020 MW Punatsangchhu Stage-II (Puna-II). In pushing for dams, it reflects the failure of several Indian agencies in comprehensively assessing the fragile Himalayan geology, similar to Sikkim and Arunachal Pradesh flanking Bhutan. These agencies are the Central Water Commission, the Geological Survey of India, and WAPCOS, apart from the CEA.
“Punatsangchhu has been a story of disaster with international landslide experts like Dave Petley having pointed out it was a blunder to start a dam at the location that seems to be on the debris of past landslides,” environmental activist and water expert Himanshu Thakkar said. “The Puna-I project is more or less a washout and hence they are considering the alternative of a barrage there. But that also does not seem to have been finalised. It is an admission of a major failure by these agencies,” he said.
Reports in Bhutan said the governments of the two countries have tasked the eight-member Technical Coordination Committee (TCC) with reviewing and proposing a path forward for the Puna-I dam. A mutual decision was made to initiate geological investigation studies at the project site, Bhutan’s power officials said, indicating that the TCC would determine the extent of additional geotechnical investigations required at the dam site. “We need to re-look at the geological survey of the (Puna-I) dam. There have been many reasons for the delay, including technical issues. The (soil) stabilisation measures have not yielded the results they wanted,” Bhutan’s Prime Minister Lotay Tshering said. https://www.thehindu.com/news/national/the-shadow-from-the-fallen-sikkim-dam-falls-on-indias-hydroelectric-projects-in-bhutan/article67420574.ece (15 Oct. 2023)
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