Department of Energy(DOE)

The Department of Energy (DOE) within the Ministry of Trade & Industry has been formed during the restructuring process of the erstwhile Department of Power in July 2002. DOE is responsible for the formulation of energy and power sector policy, plans, programs and guidelines/regulations, feasibility studies related to hydro power development, Detailed Project Reports (DPRs) for sustainable development of hydro power projects. DOE also performs the function of RGoB/donor/lender fund coordination related to energy/power sector projects. DOE also has the mandate to issue techno-economic clearances and technical sanctions for all capital works in the energy/power sector.DOE currently has four Divisions with nearly 200 employees. DOE is headed by a Director General.

Vision

The DoE envisions “becoming a dynamic, high performing government agency, that effectively promotes hydro power development to achieve economic self-reliance and that fosters the sustainable use of other modern forms of energy in the kingdom”. This vision is embedded in the broader national vision of increased level of industrialization, continued balanced growth of the economy, prosperity and sustainable development and therefore provides a sense of direction to the organization in perfect alignment with the development policies and philosophy of RGoB. It provides a big picture perspective of who they are as organization, what they do and where they are heading befitting the broad national framework of socio-economic development.

Mission

The mission of DoE is “to govern and facilitate integrated development of a sustainable and robust energy sector that drives the national economy and meets the demand for quality modern energy services of the Bhutanese society”. DOE wishes to achieve this mission by introducing reforms, formulating appropriate policies and regulations, preparing plans and programs for development and utilization of energy resources and strengthening institutional capacity. It can be seen as being derived from an overarching national vision aiming to promote socio-economic development of the nation through optimum development of the energy sector particularly the hydro-power, giving due regards to the principles of sustainability, protection of environment and conservation and rational use of natural resources. This can also be seen rooted in their expected roles and functions and policy directives in support of development of energy, increasing hydro-power production capacity, encouraging energy efficiency and accelerating renewable energy diffusion.

It emerges from the acknowledgement that energy sector plays a critical role in the overall development of the country by providing not only the energy supply to fuel industrial development and thereby creating access to employment and income but also by contributing to the national revenue from the sale of excess energy. Immense potential had been identified but only a very small percentage of the potential has been exploited so far. Hence the goals of reforming the energy sector for economy and efficiency, setting up of a appropriate regulatory framework, preparing and implementing appropriate plans and programs for development of hydro-power and other forms of energy and their utilization and development of the capacity of energy sector which are embedded in the mission are very contextual.

Altogether, this gives DoE an organizational identity and sense of business purpose to which they want to commit themselves and strive to pursue them in the days to come.
As per Power System Master Plan study that was updated in 2002, the country’s total hydropower potential has been stated as 30,000 MW, of which about 23,760 MW from 76 sites (which are above 10 MW capacity) has been identified as techno-economically feasible for development. However, the total hydropower developed as of April 2006 is only 468.698 MW which is mere 1.56% of the total potential. Even with the full commissioning of 1020 MW Tala hydroelectric project sometime by the end of 2006, the total hydropower that would have been developed would remain about 1488.698 MW, about 4.96% of the total potential. Therefore, there is lot to be still done to accelerate the development of hydropower potentials of the kingdom.

Objectives

In line with the vision and mission statements, the DoE identified a set of specific and measurable performance targets. These had varying time frame and therefore they were classified into two; as long-term objectives having longer time frame (2012 and beyond up to 2020) and as short-term objectives which were targeted to be achieved within the 9th Plan. These are listed below:

Long-Term Objectives

• Ensure Electricity for all.
• Increase generation capacity to a minimum of 5000MW by 2020.
• Enable development of National Transmission Grid.
• Establish effective Management Information System.
• Promote alternate and cost effective energy generation from Renewable sources through adaptive research     and development.
• Completion of standards and codes.
• Enable development of Hydropower through Independent Power Producers and Joint Venture.
• Develop Minimum Energy Performance Standards and Energy Appliances Labeling Program.
• Establishment of National Load Dispatch Center and System Operator.
• Conduct Energy Audit for power-intensive industries.
• Introduce reforms in the Energy sector to make the sector vibrant, efficient and cost effective.

Short-Term Objectives

• Establish Bhutan Electricity Authority as autonomous organization
• Enable establishment of Druk Hydro-Power Corporation
• Enable rural electrification of 15000 households in 20 Dzongkhags
• Formulate Framework for Renewable Energy Policy
• Prepare Rural Electrification Master-Plan for 20 Dzongkhags.
• Prepare Integrated Energy Management Master Plan
• Prepare 3 Detailed Project Reports for Hydro-Power development
• Provide 1500 Solar Systems and 500 Water Heating Systems
• Enable Providing Grid Electricity Supply to Trongsa, Gasa, Bumthang, Tsirang and Dagana
• Finalize draft regulations, standard and codes for electricity sector
• Develop communication out-reach programs for electricity regulations
• Establish 30 Hydro-meteorological stations and set up real-time hydro-meteorological data transmission     facilities in 20 Dzongkhags
• Conduct educational and awareness programs for energy efficiency and conservation
• Develop appropriate technology for increasing wood-fuel efficiency
• Develop policy for private sector participation in Hydro Power Development
• Introduction of Community based electricity supply system

Core Activities

In line with the proposed vision, mission and objectives, DoE is carrying out the following core activities:
• Formulate plans and prepare projects and programs documents for development of large, small, mini and micro hydro-power projects
• Formulate plans and prepare project and program documents for development of other renewable energy resources
• Formulate Projects and mobilize resources for rural electrification and non-economically viable projects
• Develop standards and codes for generation, transmission and distribution of electricity
• Conduct feasibility and field investigation survey for development of energy resources
• Conduct studies for adoption of fuel cell and other bio-fuel technologies
• Conduct Energy Modeling and Demand forecasting
• Coordination, expansion and up gradation of power systems including system analysis.
• Provide technical sanctions and techno-economic clearances for projects
• Collect, compile, analyze and disseminate quality Hydro-meteorological and sediment data and information
• Conduct climate study, modeling and weather forecasting
• Provide flood warning information
• Licensing of electricity service providers
• Monitor and Evaluate Projects and Programs
• Create awareness and encourage use of Energy Efficient Appliances

Historical Background
Electricity was first introduced in Bhutan in 1966 with the installation of a 256 kW diesel generator in Phuentsholing. Bhutan’s first hydropower plant was commissioned in 1967 in Thimphu with an installed capacity of 360 kW. Consequently in 1968, Samtse, Sibsoo and Phuentsholing were provided with electricity imported from the West Bengal State Electricity Board of India. Samdrup Jongkhar, Sarpang and Gelephu were later electrified in the years 1969 to 1973 with electricity imported from the Assam State Electricity Board of India.

Between 1972 to 1976, several mini hydroelectric plants were constructed through grant assistance from the Government of India at Trashigang, Wangduephodrang, Gidakom and Mongar. The construction of the Chukha Hydroelectric plant started in 1978, which was built with assistance from the Government of India. In 1988, it was fully commissioned generating 336 MW. This was a major milestone in the sustainable development of the hydroelectric sector for economic development. This led to an increase in the availability of power in the western regions of Bhutan as well as increased the government’s gross revenue from the sale of surplus power to India.

During the period between 1986 to 1987, ten micro hydroelectric plants, ranging in size from 20 kW to 70 kW, were commissioned with Japanese assistance. During 1987 to 1988, two mini hydroelectric plants at Khaling (0.4 MW) and Chumey (1 MW) were commissioned with assistance from the Government of India. During 1991 to 1993, three micro hydroelectric plants of 200 kW each were commissioned in Tsirang, Dagana and Zhemgang with Japanese grant assistance.