| Project Detail |
The knowledge and support technical assistance (TA) aims to help Bhutan diversify renewable sources and promote energy transition to more resilient energy systems with novel technologies, new approaches, and concrete strategies. Bhutans energy is dependent on mono-resource of hydropower, export revenues of which sustain the national economy and the governments revenues. This suggests that Bhutan is vulnerable to any impacts on hydropower resources due to climate change. To alleviate concerns on energy security and aftereffects, it is necessary to push for the diversification of energy resources. Hence, the TA will support the development of schemes for rooftop solar and floating solar, and the relevant knowledge enhancement among the stakeholders. The studies will assess the resource and technical design requirements, viability, business models, safeguards, and relevant regulation and policy formation on alternative energy resources.
Project Name Promoting Energy Security and Transition Project
Project Number 56163-001
Country / Economy Bhutan
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 10008-BHU: Promoting Energy Security and Transition Project
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector
Energy / Renewable energy generation - solar
Gender Equity and Mainstreaming Some gender elements
Description The knowledge and support technical assistance (TA) aims to help Bhutan diversify renewable sources and promote energy transition to more resilient energy systems with novel technologies, new approaches, and concrete strategies. Bhutans energy is dependent on mono-resource of hydropower, export revenues of which sustain the national economy and the governments revenues. This suggests that Bhutan is vulnerable to any impacts on hydropower resources due to climate change. To alleviate concerns on energy security and aftereffects, it is necessary to push for the diversification of energy resources. Hence, the TA will support the development of schemes for rooftop solar and floating solar, and the relevant knowledge enhancement among the stakeholders. The studies will assess the resource and technical design requirements, viability, business models, safeguards, and relevant regulation and policy formation on alternative energy resources.
Project Rationale and Linkage to Country/Regional Strategy
Climate and energy security. Bhutans key economic drivers are hydropower export, tourism, and agriculture. Although the tourism business was significantly affected by the coronavirus disease (COVID-19) pandemic, hydropower exports have relatively been stable and the resultant foreign currency earning has been sustained. However, hydropower generation is dependent on the availability of water resources, which can be varied by weather and climatic conditions. This means that Bhutans high dependency on hydropower (99.7%) renders the country vulnerable to climate change impacts, thereby raising energy security concerns.
Energy diversification. On concerns about climate and energy security, the government intends to diversify energy sources to improve energy independence. Bhutans Sustainable Hydropower Development Policy, 2021_stipulates to enhance energy security and develop value chains based on alternative clean energy. Renewable energy technologies such as solar and wind power have different generation profiles and patterns during the year and daytime, which can be complementary in a mix of power sources with hydropower. Thus, Bhutans Druk Green Power Corporation (DGPC) plans to fast-track solar development up to 200 MW over the next 3 years. For this purpose, ADB intends to finance Bhutans first utility-scale solar photovoltaic power plant (17 MW), and support subsequent ground-mounted solar power projects in several locations. Solar power will compensate for power deficits in the dry season and increase hydropower export in the wet season by using additional solar power for domestic consumption. Given this advantage, solar power generation can be promoted and diversified further from ground-mounted solar photovoltaic power type to floating solar and rooftop solar power types.
Especially, Bhutans floating solar power in the existing hydropower reservoir areas can bring multiple favorable conditions, including higher solar panel efficiency due to cooling effect on the water surface, no land acquisition requirement and conflict with fishing purposes, close access to grid systems within the premise of the hydropower stations, and complementary operations with hydropowers flexible generation. Rooftop solar can also be expanded in urban areas on the rooftops of buildings and houses for various applications such as electricity and water heating as well as cooking. Given the nascent stage of solar power development in Bhutan, this new technological and business areas can be demonstrated by the public sector_to gradually boost private sector mobilization and create new job opportunities, particularly for women for operations and maintenance activities. The alternative domestic energy resources will help Bhutan promote energy transition and improve energy security.
Impact
Bhutans diversification of clean energy sources promoted. |
