BHUTAN: Eleventh Five Year Plan (2013 - 2018), Volume 1: Main Document

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2013
Effective Start Year: 
2013
Effective End Year: 
2018
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Multi-Sector
Energy Types: 
All, Power, Renewable, Hydropower
Issued by: 
Gross National Happiness Commission, Royal Government of Bhutan
Source: 
Gross National Happiness Commission - Royal Government of Bhutan
File: 
Eleventh Five Year Plan (2013 - 2018)
Overall Summary: 
The Eleventh Five Year Plan is the second five year plan to be implemented since the introduction of Democratic Constitutional Monarchy in 2008. It presents the overall development planning framework, efforts towards operationalizing Gross National Happiness (GNH) and key milestones to be achieved by 2020. It provides an overview of demographic and socio-economic development trends, national objectives, local plans and KPIs. It includes a chapter on the Hydropower, Renewable Energy and Hydromet Sector.
Access
Energy access priorities: 
[E]xpansion of rural electrification.
Energy access targets: 
Improved cook stoves up from 6 to 5006. Biogas plant in place, up from 600 to 3100. Solar water heating system in place, up from 10 to 110. ---No. of households using bio-fuel as source of cooking/heating: 600 to 3,400.---Energy security enhanced through diversification and promotion of renewable energy technologies installation of 8,000 alternate forms of energy systems (improved cook stoves, biogas, solar water heater), up from baseline of 616 installation to 8,216.
Clean cooking solutions: 
Improved cook stoves up from 6 to 5006.---Programme: Promotion and Development of Renewable/Alternate Energy Technologies - [...] The Programme will promote biogas plants as alternate source of fuel for cooking, Compact Fluorescent Lamp (CFL) instead of incandescent lamps in the LV category consumers, energy efficient wood stoves to reduce fuel-wood demand and solar water heating systems as alternative means for heating water and space.
Consumer subsidies: 
A new element in the revised electricity tariff is that rural consumers are provided free electricity for first 100 units for the next three years. This was done to encourage the rural community to use electricity to cut down use of firewood for environmental and health reasons.
Efficiency
EE action plans: 
Programme: Promotion and Development of Renewable/Alternate Energy Technologies - [...] The Programme will promote biogas plants as alternate source of fuel for cooking, Compact Fluorescent Lamp (CFL) instead of incandescent lamps in the LV category consumers, energy efficient wood stoves to reduce fuel-wood demand and solar water heating systems as alternative means for heating water and space.
Renewable Energy
RE priorities: 
Meaningful and purposeful alternate renewable energy promoted.
RE targets: 
4,546 MW of hydropower by 2018 from the 2013 levels of 1,488 MW, exceeding the Vision 2020 target of 3,000 MW by 2017. By 2020, 10,000 MW of hydroelectricity generation capacity.---KPIs for Eleventh Five Year Plan: Installed capacity of Hydro Power Plants from 1488 MW baseline to 4546 MW target; Solar power capacity from 152 kW baseline to 1152 target; Wind power capacity from 0 kW baseline to 360 kW target; Small Hydro Power Plants from 8000 kW baseline to 20000 kW target; Biomass capacity from 0 kW baseline to 10 kW target by 2018.
RE action plans: 
To enhance energy security and reduce dependency on fossil fuel, other forms of alternate renewable energy will be promoted. Renewable energy (RE) master-plan will be developed to map RE potential and sites and feasibility studies will be conducted. ---Programme: Accelerated Hydropower Generation & Transmission Network Strengthening – Major activities include new system infrastructures and system reinforcements to ensure reliability and security of domestic power supply; pre-feasibility studies and reconnaissance studies for new hydropower projects, implementation of pre-construction activities and construction of hydropower projects; establishment of a Power Training Institute to address manpower deployment in Hydropower projects; and construction of new transmission lines and associated substations by BPC.---Programme: Promotion and Development of Renewable/Alternate Energy Technologies - The Programme aims to diversify energy supply mix using other renewable energy resources like solar, wind, biomass, small hydro and other emerging modern fuels for energy generation and to strengthen the institutional capacity for provision of efficient and responsive energy services in the Country. The Program intends to develop Renewable Energy Master Plan, conduct pre-feasibility and feasibility studies to attract the investors in the RE Sector. ---National capacity to Design, Build, Operate and Manage hydro power plants developed;
RE public awareness/promotional programmes: 
National capacity to Design, Build, Operate and Manage hydro power plants developed;
Environment
Decarbonization strategy: 
In urban areas, eco-friendly mass public transportation services will be introduced to reduce road congestion, vehicle emissions and improve public service efficiency [...].--- [...] alternate modes of transport will also be explored for the purpose of controlling the carbon emission.--- Promotion of electric vehicles will be pursued to address environmental issues and reduce dependency on fossil fuel.
Pricing
Renewable energy subsidies: 
A new element in the revised electricity tariff is that rural consumers are provided free electricity for first 100 units for the next three years. This was done to encourage the rural community to use electricity to cut down use of firewood for environmental and health reasons.
Energy Supply and Infrastructure
Energy supply priorities: 
Key Objective - i) Increase energy security and contribution to revenue, economic growth and employment.---Development of sustainable energy allocation policy - :With the commissioning of new hydropower projects in the next few years, Bhutan’s firm power will be enhanced substantially. To prepare for the optimum utilization of firm power that would be available and to plan for clean green industrial development, energy allocation policy will be formulated. ---To enhance energy security and reduce dependency on fossil fuel, other forms of alternate renewable energy will be promoted. Renewable energy (RE) master-plan will be developed to map RE potential and sites and feasibility studies will be conducted. ---Energy security enhanced through diversification and promotion of renewable energy technologies installation of 8,000 alternate forms of energy systems (improved cook stoves, biogas, solar water heater), up from baseline of 616 installation to 8,216.
Energy mix: 
Promotion and Development of Renewable/Alternate Energy Technologies: - The Programme aims to diversify energy supply mix using other renewable energy resources like solar, wind, biomass, small hydro and other emerging modern fuels for energy generation and to strengthen the institutional capacity for provision of efficient and responsive energy services in the Country. [...]
Infrastructure development priorities: 
To enhance energy security and reduce dependency on fossil fuel, other forms of alternate renewable energy will be promoted. Renewable energy (RE) master-plan will be developed to map RE potential and sites and feasibility studies will be conducted.---Accelerated development of 10,000 MW of hydropower, construction of transmission lines and substations, and expansion of rural electrification. ---Currently, construction of 1,020 MW Punatsangchhu I Hydroelectric Project, 1,000 MW Punatsangchhu II and 720 MW Mangdechhu Hydroelectric Projects are ongoing. All three projects are scheduled to be completed by 2017-18.---The other projects, to achieve 10,000 MW hydroelectricity generations by 2020, are planned to start construction during the current Plan period [Please see table Table 5.8.1 Pipeline Projects for details on those projects].
Investment
Investment climate development: 
Programme: Promotion and Development of Renewable/Alternate Energy Technologies -[...]The Program intends to develop Renewable Energy Master Plan, conduct pre-feasibility and feasibility studies to attract the investors in the RE Sector.
Bidding and Tendering: 
No. of Bhutanese contractors qualifying for HPP (Hydro Power Projects) bidding: n/a in 2013 - 3 by 2018
Governance
Energy management principles: 
Key Objective - i) Increase energy security and contribution to revenue, economic growth and employment.
M&E of policy implementation: 
The monitoring and evaluation of the Eleventh Plan will be based on the National Monitoring and Evaluation System (NMES). The NMES comprises the monitoring and evaluation institutional set-up and procedures and the Planning & Monitoring system (PlaMS) - a web-based computerized system. The monitoring and evaluation institutional set-up and procedures are described in the Monitoring and Evaluation (M&E) Manual 2006.
Technology
Clean energy technology deployment: 
Promotion and Development of Renewable/Alternate Energy Technologies: - The Programme aims to diversify energy supply mix using other renewable energy resources like solar, wind, biomass, small hydro and other emerging modern fuels for energy generation and to strengthen the institutional capacity for provision of efficient and responsive energy services in the Country. [...] The Programme will promote biogas plants as alternate source of fuel for cooking, Compact Fluorescent Lamp (CFL) instead of incandescent lamps in the LV category consumers, energy efficient wood stoves to reduce fuel-wood demand and solar water heating systems as alternative means for heating water and space. ---Key Objective -Enhance quality of construction industry through introduction of new energy efficient technology, mechanization and human resource/professional development.
Natural gas transportation technology: 
7. Exploring bio-gas as alternate source of energy.