Renewables Readiness Assessment of Bhutan Expert ...
Transcript of Renewables Readiness Assessment of Bhutan Expert ...
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
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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
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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%
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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
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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
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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
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Electricity
Source: DHPS Power Data Book 2017
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Electricity Demand and Supply
#REF! #REF! #REF! #REF!
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Energy Demand and GDP
Population, 634982
Population, 735553
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100000
200000
300000
400000
500000
600000
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140000
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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
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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%
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51
50
30
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40
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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
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Building Sector Electricity Demand
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Ele
ctr
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GW
h)
Year
Rural Urban Commercial Institutional Building
Source: BPC Power Data Book 2017
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Load Curve
0.00
2.00
4.00
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nts
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MW
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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
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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
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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)
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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
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and (
GW
h)
Industry
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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
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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