Bhutan: Acceleration of Hydropower Trading Development

This technical assistance aims to strengthen the power sector’s key frameworks and systems to enhance Bhutan’s hydropower development and trading. It will support activities of the Department of Hydropower and System, and the Department of Renewable Energy, Ministry of Economic Affairs, the Bhutan Power Corporation, the Druk Green Power Corporation (DGPC), the Tangsibji Energy Hydro (THyE), and the Department of Forest and Park Services, Ministry of Agriculture and Forests.

PROJECT DETAILS

Commitment Date

Funding Type

Country

Sector

Status

Total Cost

7 Jan 2015

Technical Assistance

Bhutan

Energy

Ongoing

$1 million

KEY OUTPUTS

Study of sector reforms in terms of a functional segregation of distribution and transmission, an independent system operator, and a power consolidator to facilitate trading of power from small/micro and other renewable energy producers

Experts’ reviews on the existing sustainable hydropower development policy and draft tariff policy

THyE’s equity finance—DGPC’s and THyE’s equity financing to help them select a joint venture private partner through public private partnerships and/or issue initial public offering for equity participation in Nikachhu hydropower development

Safeguard strengthening for THyE. Safeguard implementation and monitoring for THyE and DGPC to ensure compliance and enhancement of the Nikachhu hydropower plant and related transmission line

Institutional capacity enhancement for DGPC in new business priority areas

FINANCING

$1 million (Technical Assistance Special Fund)