||Promoting Clean Energy Development in Bhutan
|Project Type / Modality of Assistance
|Source of Funding / Amount
|TA 8630-BHU: Promoting Clean Energy Development in Bhutan|
|Norwegian Grant (w/ LoA)
||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change
||Governance and capacity development
Private sector development
|Sector / Subsector
- Energy sector development and institutional reform
|Gender Equity and Mainstreaming
|| No gender elements
||The technical assistance (TA) aims to support hydropower and other renewable energy resources development in Bhutan by providing assistance in (i) investment projects preparation; (ii) policy formulation and enabling environment development; and (iii) institutional capacity strengthening for the implementing agencies of the TA.
|Project Rationale and Linkage to Country/Regional Strategy
||Hydropower is the backbone of Bhutan''s economy, generating 99% of the country''s electricity supply, and accounting for 18% of total national revenue and 20% of gross domestic product in 2013. At present, only 5% of hydropower potential in Bhutan has been developed. The government recognizes hydropower''s central role in Bhutan''s development and set out in its Eleventh Five Year Plan to accelerate expansion of hydropower capacity. The excessive dependence on the single resource of hydropower imperils Bhutan''s energy security. Bhutan will, according to its Alternative Renewable Energy Policy (2013), develop alternative renewable energy resources to enhance energy security, alleviate overdependence on hydropower, reduce conventional fuels consumption and minimize greenhouse gas emissions. From the demand side, it is necessary to formulate a strategic national energy efficiency policy to promote the use of efficient technologies, processes, and products throughout the energy supply and consumption chains.
||Enhanced clean and sustainable energy development in Bhutan.
|Description of Outcome
||Improved enabling environment for the development of hydropower and other renewable energy resources.
|Progress Toward Outcome
||Implementation is ongoing.
|Description of Project Outputs
1. Investment projects prepared.
2. Policy formulated and enabling environment developed.
3. Institutional capacity strengthened.
|Status of Implementation Progress (Outputs, Activities, and Issues)
||Four consulting firms have been engaged by ADB to undertake distinct sets of activities: (i) Package 1: Prefeasibility Study of 3 Hydropower Projects; (ii) Package 2: Renewable Energy Master Plan; (iii) Package 3: Energy Efficiency Policy; and (iv) Package 4: Measurement, Reporting, and Verifications (MRV). Given the complexity of the TA, 3 individual consultants have been engaged to assist in project implementation.