DEPARTMENT OF RENEWABLE ENERGY, MINISTRY OF ECONOMIC AFFAIRS, ROYAL

GOVERNMENT OF BHUTAN

“Demand –side Energy Management - Ongoing initiatives,

issues and opportunities”

Renewables Readiness Assessment of Bhutan

Expert Consultation Workshop

Thimphu, Bhutan

25th December 2018

Research and Development DivisionDepartment of Renewable EnergyMinistry of Economic AffairsRoyal Government of Bhutan

2

Restricted Development Power

Generation Potential

5-Feb-19

Energy Resources

Hydropower - 22,419 MW 117,836 GWh per annum

Wind Power – 761 MW 308 GWh per annum

Solar PV – 12,018 MW 20,025 GWh per annum

Wood &

Wood residues – 2,680 MW 749 GWh per annum

Energy Supply 2017

Large HPP- 1606 MW 7,709 GWh

Mini/ Micro HPP - 7.99 MW 12.1 GWh

Wind Power – 600 kW 1.1 GWh

Others –

Coal, Petroleum fuel (import), Fuel wood

Total Supply = 937 ktoe

3 5-Feb-19

ENERGY DEMAND

4

Energy Demand (2014)

5-Feb-19

16% 15%

1%

3%ATF – 0.5%

Others- 0.8%

28%36%

36%

Building42%

Industry37%

Transport19%

Others

RATIO OF ENERGY CONSUMPTION BY SECTORS (2014)

Building Industry Transport Others

Residential33%

Commercial9%

HV Industries22%

Other14%

Aviation1%

Road18%

5 5-Feb-19

Energy Consumption

10%

Electricity 57%

Fuelwood 85%

2%1%

Diesel 81% Petrol 16%

3%

2%

2%

Coal 40%

0% 20% 40% 60% 80% 100%

Building

Industry

Transport

RATIO OF ENERGY CONSUMPTION BY FUEL (2014)

Electricity Fuelwood Diesel Petrol

LPG Kerosene Coal Others

6 5-Feb-19

Energy Consumption Trend

Coal, 71.65

*Fuelwood 27.31

Electricity (0n-grid), 187.94

Petrol, 31.78

Diesel125.69

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(kT

OE

)

LPG ATF Kerosene Coal Fuelwood Electricity (0n-grid) Petrol Diesel

461 ktoe

215 ktoe

9% CAGR

*Fuelwood consumption - as per DoFPS

* Coal consumption – as per draft GHG Inventory TNC

7 5-Feb-19

Rationale and Strategies for Energy Demand Intervention

1. Diversify energy sources

and enhance energy

security

2. Increase revenue

3. Increase energy

productivity

4. Reduce GHG emissions

1. Improve energy efficiency

2. Reduce energy intensity

3. Switch to clean energy

4. Create awareness

Energy Security

Economic

DevelopmentClimate

Change

2017

Revenue from Electricity

Export = 12,397 Million

Nu.

Import value of fossil fuel

for Energy Use = 11,304

Million Nu.

Source: SYB 2018, BTS 2017

8 5-Feb-19

Electricity

Source: DHPS Power Data Book 2017

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0 0 0 0 0 0 0 0 0 0

Fir

m P

ow

er

an

d P

ow

er

De

ma

nd

(MW

) -

>

Fir

m E

ne

rgy a

nd

En

erg

y

De

ma

nd

(G

Wh

) ->

Electricity Demand and Supply

#REF! #REF! #REF! #REF!

9 5-Feb-19

Energy Demand and GDP

Population, 634982

Population, 735553

0

100000

200000

300000

400000

500000

600000

700000

800000

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

TO

E

Mill

ion

Nu

.

Energy Consumption GDP Population

0.0000

0.0005

0.0010

0.0015

0.0020

0.0025

0.0030

0.0035

0.0040

0.0045

ko

e/N

u

Energy Intensity

326

626.05

0

100

200

300

400

500

600

700

ko

e p

er-

ca

pita

percapita energy Consumed

Source: Annual Environmental Accounts 2018

10 5-Feb-19

Energy Demand and GHG Emissions

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: NEC

GHG emission cap - Sequestration capacity of Forests -> 6,310 Gg CO2e

11 5-Feb-19

Building & Appliances Sector

12 5-Feb-19

Household Energy End-uses

9995

1 0 0 0

93

58

33

2 0 1

0

20

40

60

80

100

120

Electricity LPG Firewood Bio-gas Kerosene Other

Pe

rcen

tage

(%

)

Source of Energy for Cooking

Urban Rural

58,333

105,678

Households

Urban

Rural

36%

64%

15

51

50

30

0

60

10

0 0

30

00

10

20

30

40

50

60

70

Firewood Electricity Kerosene LPG NoHeating

Other

Pe

rcen

tage

(%

)

Bhutan Living Standards Survey Report 2017

Source of Energy for Heating

Urban Rural

99%

1%

98%

2%

0%

20%

40%

60%

80%

100%

120%

Electricity Other

Perc

enta

ge(%

)

Source of Energy for Lighting

Urban

Rural

13 5-Feb-19

Building Sector Electricity Demand

0

50

100

150

200

250

300

350

400

450

500

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Ele

ctr

icity D

em

an

d (

GW

h)

Year

Rural Urban Commercial Institutional Building

Source: BPC Power Data Book 2017

14 5-Feb-19

Load Curve

0.00

2.00

4.00

6.00

8.00

10.00

0

10

20

30

40

50

60

Ph

ue

nts

ho

ling L

oa

d (

MW

)

Th

imp

hu

Lo

ad

(M

W)

Time

DAILY LOAD CURVE

Thimphu Summer Load Thimphu Winter Load

Phuentsholing Summer Load Phuentsholing Winter Load

Source: BPC Power Data Book 2017

15 5-Feb-19

EE&C measures in Building & Appliances sector

Building energy performance

- Energy Efficiency Building codes

- Energy Audit and reporting guidelines

Energy efficient lighting (LED)

Energy Efficient space heating (reversible heat pumps)

Standards and Labeling of energy consuming appliances

- Endorsement labels

- Minimum Energy Performance Standards(MEPS)

Clean cooking (promotion of electrical cook stoves)

Peak shaving or load shifting (none in development)

16 5-Feb-19

EE&C measures in Building & Appliances sector

─ Tax and duties exemption on LED lamps and reversible heat pumps.

─ Cash rebate scheme for 5-star refrigerators (direct cool and frost free)

─ Roll out of 600,000 LED lamps on cost sharing basis

─ Building insulation improvement by using 1 inch glass wool in 185

institutional/ commercial buildings

─ Use of 1 inch EPS insulation for roof in 75 institutional/ commercial

buildings

─ Use of double-glazed windows in 300 buildings

─ Use of rat trap wall in 95 new buildings (residential/ institutional/

commercial)

─ Encourage public procurement of energy efficient appliances and

equipment

Some recommendations from Energy Audit 2014 and S&L Scheme 2018

17 5-Feb-19

Energy Saving Potential in Building and Appliances sectors

Energy Saving Potential - BAU to Low Intervention EE Scenario

Interventions Planned

Nos.

targeted

per year

Energy

Saving

Potential

GWh

Projected

Energy

Saving

Potential

TOE

Building Insulation (1" glass wool)= 12 0.048 4.10

Building Insulation (1" EPS roof)= 5 0.080 6.87

Building Insulation (rat trap wall)= 6 0.052 4.49

Building Insulation (double glazed window)= 20 0.124 10.69

LED lamps (BAU to EE, 28% Market Share) = 200,000 3.720 319.86

Refrigerator (BAU to EE, 20% Market Share) = 2,251 0.246 21.13

Heating (BAU to EE, 20% Market Share) = 3,905 1.511 129.96

Total Energy saving on Low EE Scenario = 5.8 497.11

1.4 % of total LV

Consumption

18 5-Feb-19

Energy Saving Potential in Building and Appliances sectors

Impact of EE Intervention – LED Lamps (200,000)

Description UnitRevenue Impact (1st Yr.) Revenue Impact (Lifetime -10 Yrs.)

Foregone Sales Tax(-revenue) Nu. 2,322,823 2,322,823

Foregone Import Duty (-revenue) Nu. 11,607 11,607

Saved Subsidy (revenue) Nu. 8,518,800 85,188,000

Balance (Total revenue Nu. 6,184,370 82,853,570

Description Unit Revenue Impact (1st Yr.) Revenue Impact (Lifetime -10 Yrs)

Foregone Sales Tax(-revenue) Nu. 1,274,246 1,274,246

Foregone Import Duty (-revenue) Nu. - -

Saved Subsidy (revenue) Nu. 561,872 5,618,721

Balance (Total revenue Nu. (712,374) 4,344,475

Description UnitRevenue Impact (1st Yr.) Revenue Impact (Lifetime -10 Yrs.)

Foregone Sales Tax(-revenue) Nu. 16,282 16,282

Foregone Import Duty (-revenue) Nu. 65,129 65,129

Saved Subsidy (revenue) Nu. 4,980,690 49,809,447

Balance (Total revenue Nu. 4,899,279 49,728,036

Impact of EE Intervention – Heating (Reversible Heat Pumps: 3,905)

Impact of EE Intervention – Refrigerators (2,215)

19 5-Feb-19

Industry Sector

20 5-Feb-19

Electricity, 57%

Coal, 40%

Others, 3%

Industry Energy Consumption 2014

Industry Sector

─ Industry is the fastest growing

sector in the country

─ Most energy consumption by

HV industries

Household

11%Commercial

and

Institutional

6%

Industry,

83%

Electricity Consumption by various Sector 2014

0

200

400

600

800

1000

1200

1400

1600

1800

Ele

ctr

icity D

em

and (

GW

h)

Industry

21 5-Feb-19

EE&C measures in Industry sector

Energy performance of energy-

intensive industries

- Energy Audit and

reporting guidelines

Training of energy managers in

industries

Awareness programs for

industries

─ Replacement of V-Belt with Flat-Belt

Drives

─ Improvement of power factor (in motors and

utilities) through addition of capacitor banks

─ Replacement/ downsize motors and use/

replace with Energy Efficient Motors

─ Replacement of outdated pumps with right

sized energy efficient pumps for blade cooling

─ Replacement of inefficient lighting (FTL,

HPMV, HPSVL) with efficient lighting system

─ Installation of VFD to the high power

cooling water circulation pumps and identified

fans.

─ Replacement of identified inefficient

blowers, fans and compressors with energy

efficient ones

Some recommendations from Energy Audit 2014

Total Energy Saving

Potential = 2,392 TOE/ year

Electricity saving potential = 27 GWh per year

22 5-Feb-19

Transport Sector

23 5-Feb-19

Transport Sector

Source: Report on Climate Change, GIZ

EE navigators for National Governments

24 5-Feb-19

Transport Sector

Transport sector is the leading contributor to current trade deficit

(import of petroleum fuels)

MoIC – introduce 300 EVs (Bhutan Sustainable Low-emission Urban

Transport Systems) on cost sharing mechanism

EE&C Policy targets for Energy Efficiency in Transport Sector:

Import of 23 electric buses instead of diesel buses (20 seater)

Import of 5,097 electric cars instead of petrol/ diesel cars

Import of 66 electric bikes instead of petrol bikes

Improvement in public transport system (26 buses replacing cars)

25 5-Feb-19

Achievement

99.98% Rural Electrification achieved

Draft Energy Efficiency & Conservation Policy

Standards and Labeling scheme for energy efficient appliances

28,373 LED lamps distributed nationwide as pilot project

5,000 biogas plants installed in partnership with DoL.

12,390 Improved Cook Stoves rolled out on subsidy scheme.

1,610 Improved Heating stoves rolled out on subsidy.

Solar Water Heating Systems – 8 Nos. piloted

Energy audits for 39 industries and 1 HPP

Yearly awareness programs conducted (painting competition, audiovisual programs,

print media)

Several bilateral and multilateral meetings/ workshops conducted to establish

institutional arrangement and share knowledge & resources

26 5-Feb-19

Challenges

─ Need for legislative framework: Policy in draft, Act would be necessary in future.

─ Funding Mechanism – No Revolving Fund for EE. Might draw from Renewable

Energy Development Fund (REDF), local banks unaware of EE project appraisal.

─ Tax incentives/ subsidies: Need to create sub-category (HS BTC) for “Energy

Efficient Appliances” OR certification schemes to consider exemptions and waivers

─ Energy Performance Standards not adopted

─ Energy Management Systems: No dedicated energy managers or systems in place

─ Lack of local capacity (Public and Private) – No Energy Managers, Energy auditors,

─ Limited market for EE – No private players (ESCOs)

─ Need for awareness on Energy Efficiency

─ No defined roles for uptake of monitoring, reporting and evaluation

27 5-Feb-19

Opportunities and Way Forward

Policy and regulation

National Energy Efficiency and Conservation Policy (Draft)

Energy efficiency roadmap 2030 (Final draft)

Codes and Guidelines

Institutional arrangement

Coordination among key players

Lead agency - DRE ( proposed “Energy Efficiency Division”)

Incentives

Tax and duties exemption for high energy efficiency

Cash rebates, low interest rates

Certification, awards

Monitoring, evaluation and reporting mechanism

Energy management and reporting system for energy intensive buildings/ industries

Data collection and analysis

Compliance and surveillance

Expected

measures to

realize EE&C

targets

Thank you

www.moea.gov.bt