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Bhutan: Proposed Alternative Renewable Energy Pilot Project

Sovereign (Public) Project | 53365-001 Status: Proposed

The proposed grant will provide reliable and sustainable electricity to the rural households through harnessing solar power which will contribute to poverty reduction, and gender equality. The main objective of the project is to demonstrate the viability of solar power through a pilot project and develop an enabling regulatory framework with due consideration given to the rural poverty.

Project Details

Project Officer
Jang, Yoojung South Asia Department Request for information
Country
  • Bhutan
Sector
  • Energy
 
Project Name Proposed Alternative Renewable Energy Pilot Project
Project Number 53365-001
Country Bhutan
Project Status Proposed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Energy / Renewable energy generation - solar

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed grant will provide reliable and sustainable electricity to the rural households through harnessing solar power which will contribute to poverty reduction, and gender equality. The main objective of the project is to demonstrate the viability of solar power through a pilot project and develop an enabling regulatory framework with due consideration given to the rural poverty.
Project Rationale and Linkage to Country/Regional Strategy Bhutan is one of the smallest, but fastest-growing economies in the world. Its annual average economic growth of 7.6 percent between 2007 and 2017 far exceeds the average global growth rate of 3.2 percent. This high growth has contributed to reducing poverty. Poverty rate in Bhutan declined from 12% in 2012 to 8.2% in 2017. Despite this significant decrease in the national poverty rate , poverty in rural areas (11.9%) is significantly higher than urban areas (0.8%). To continue the economic growth and dwindle the poverty, the Royal Government of Bhutan has implemented poverty alleviation programs in the poorest villages.
Impact Energy security of the society increased by providing reliable and sustainable electricity supply and promoting alterative renewable energy resources
Outcome Viability and sustainability of solar power as an alternative energy and income source demonstrated in pilot rural villages
Outputs

1. Regulatory framework for solar photovoltaic (PV) power purchase prepared

2. Grid adequacy assessed and small-scale solar PV system pilot-tested

3. Energy based livelihood skills enhanced

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The project preparation is supported by TA8311-REG: Enhancing Gender Equality Results in South Asia. Individual consultants have been and will be fielded to undertake preliminary due diligence. The DRE successfully implemented the previous projects and has a proper track record in implementing and administering ADB projects. Advanced contracting will be explored for procurement of the consulting firm. It is estimated that contract around 10% of the proposed grant amount may be awarded as advanced contract. The government and EA were advised that ADB's approval of advance contracting in principle does not commit ADB to finance any part of the project. In addition, the borrower should undertake the advance contracting at its own risk and ADB reviews the borrower's process.
Procurement Proposed procurement classification is Category B. DRE has considerable procurement experience and adequate arrangements are in place for the project. The design phase will include detailed procurement capacity and risk assessment, and identification of contracting packages.
Responsible ADB Officer Jang, Yoojung
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Department of Renewable Energy, Ministry of Economic Affairs
Thimphu, Bhutan
Timetable
Concept Clearance 19 Dec 2019
Fact Finding 27 Jan 2020 to 31 Jan 2020
MRM -
Approval -
Last Review Mission -
Last PDS Update 20 Dec 2019

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.