Dagachhu Hydroelectric Project Commissioned
21 February 2015
Commissioning of the first unit of the 126 Megawatt (MW) Dagachhu Hydroelectric Project officially began at 15:25 on 21 February 2015 with commercial generation of energy from Bhutan to India, coinciding with the 35th birthday of His Majesty the King of Bhutan. Reported electricity generation from the project—with river discharge at its lowest of 5-6 cubic meter per second during winter season—currently falls between 13-14 MW. Generating capacity during peak season can rise to a maximum of 63 MW.
An agreement between DHP and Tata Power to supply 500,000 MW of power annually to India is expected to generate an income of over $250 million over the next 25 years for the government of Bhutan. World Bank's recent “Global Economic Prospects: Having Fiscal Space and Using It,” reports completion of DHP will propel Bhutan's growth to 7.9% for the current fiscal year, 1.1% higher than the Government's target of 6.8%.
DHP is the country's first public-private hydropower partnership, with Druk Green Power Corporation holding 59% equity, India's Tata Power Company Ltd. with 26%, and the National Pension and Provident Fund owning the remaining 15%. It is also the first hydropower project in the country to have a fully national management arrangement.
The Green Power Development Project, approved by the Asian Development Bank (ADB) under the South Asia Subregional Economic Cooperation (SASEC) program, funded construction of Dagachhu hydropower plant. The project contributes to economic growth in the subregion by promoting cross-border trade and increasing access to green power.
Commissioning tests for the second 63 MW unit are already being planned, and are expected to be completed within a month.
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