The TA is designed to improve the overall efficiency of the power sector and expand the coverage of rural electrification. In line with these expected outcomes, the TA will have three components as follows:
(i) Component 1: New approaches to accelerating RE through grid expansion. In this component the TA consultants will study the Government s decentralization policies, as well as its plans for enabling district and block development entities, rural communities, and the private sector to take on the challenges of development, especially rural electrification. The consultants will then recommend models for involving the various levels of government, the private sector, and communities in RE, specifying the roles of these entities and their motives for participation. These models should include a wide range of options including but not limited to,cooperatives, energy supply services for solar PV and micro hydro power, outsourcing of billing and collection, and operation and maintenance of distribution systems (up to 11 kilovolts). The activities in this component will lead to recommendations on how the various levels of government, the private sector, and communities can be involved in RE. The new approaches will be pilot-tested,and then adopted and replicated, taking into consideration the lessons learned.
(ii) Component 2: New approaches to accelerating RE through off-grid renewable energy use. In the past, Bhutan s efforts to expand RE were biased in favor of grid extension. DOE now wants to use more off-grid renewable energy for RE, and needs to develop the policies, institutional arrangements, and approaches for this. The TA consultants will therefore review the RE master plan and integrated energy master plan, and assess ongoing activities related to the use of renewable energy for RE. They will then recommend models for using renewable energy (solar PV, micro hydro, biomass, and other forms) in RE, and specific policies, incentives, institutional arrangements, etc., that must be put in place to facilitate such use. The new approaches will be pilot-tested.
(iii) Component 3: Training, capacity building, and awareness raising. The activities in this component will pertain to raising awareness of how other government agencies (especially district and block governments), development consultants, private entrepreneurs and contractors, and communities can be involved in RE. Targeted workshops and seminars will be held to present the findings of component 1. Study tours will also be made to observe rural electrification programs in neighboring countries like Nepal, with its community-based renewable energy program, and Bangladesh, with its rural electrification cooperatives. These study tours will be specifically for local government officials and community leaders. The private sector will be invited to participate but those who join will be required to cover their own expenses. Apart from this awareness-raising program, the TA consultants will develop a regular outreach program for DOE to keep upthe awareness-raising activities even after the TA.