The high rising chain of mountains and the prospering abundance of environmental wealth is exactly what makes for extremely favorable conditions for one of Bhutan’s major economic activity.
And the one in shining prominence is the hydropower sector, easily the major force or engine set to power the Bhutanese economy.
The sector with a scope to generate a full potential of 30,000MW was the center of discussions at a recently organized conference titled 'The E3 Conference: ideas at the confluence of Energy, Economy and Environment.’
Chief among the discussion elements was how the hydropower benefits can be reaped for the country's economy taking into perspective of keeping environment in tact while also taking into account various factors of not sidestepping the vows of remaining a GNH nation that pledged green for all times to come. Also, under this header there is the issue of how the generated power could be traded in newer territories outside of what the country caters to currently.
A point to take home remained that the country shouldn't overly exert itself on the one sector, which experts at the conference pointed out is subject to the end effects of climate change and it's tributary effects, namely the melting glaciers.
At the same time, as was presented at the venue, Bhutan’s projects are mostly rain-fed and going by stats (IPCC) presented at the conference, the monsoons are to get better this year. Adding support to this is also the DGPC studies conducted with Norway which show that hydropower will be sustainable for the next 100 years. A century is a good-enough assurance to have, one should say.
Varying views also stress that other sectors stand to be ignored with one being too much under the limelight of national attention while there is also the standing deduction or question as to whether such huge investments can be absorbed in a limited time frame.
Whatever the odds, it makes sense to invest and operate in this sector as the driving force for the Bhutanese economy. Justifications are simple, as there are no viable options that would present the same scale of development and returns in the long run. It is in the country’s favor to generate hydropower because of its significant changes in altitude, which results in cheaper
At the same time, as was presented at the venue, Bhutan’s projects are mostly rain-fed and going by stats (IPCC) presented at the conference, the monsoons are to get better this year. Adding support to this is also the DGPC studies conducted with Norway which show that hydropower will be sustainable for the next 100 years. A century is a good-enough assurance to have, one should say.
Varying views also stress that other sectors stand to be ignored with one being too much under the limelight of national attention while there is also the standing deduction or question as to whether such huge investments can be absorbed in a limited time frame.
Whatever the odds, it makes sense to invest and operate in this sector as the driving force for the Bhutanese economy. Justifications are simple, as there are no viable options that would present the same scale of development and returns in the long run. It is in the country’s favor to generate hydropower because of its significant changes in altitude, which results in cheaper
electricity production.
As for melting glaciers being a concern, it apparently should not immediately be an obstacle for the hydro projects as only 10 percent of the rivers (Bhutan) is glacier melt and years of existence under ‘climate change’ has not altered the hydrology in drastic terms.
A skeptical point of observation made is that with an ambitious target set at 10,000 MW to eventually work for the full potential of 30,000MW, the multiple dams built to function as water reservoirs would result in such high risks as man-made or artificially–induced seismicity or earthquakes.
Thanks to the terrain and geography yet again, Bhutan’s hydropower projects are all run-of-the-river projects and it need not necessarily have to heavily rely on the building of giant dams to build up water force.
A concern of old was always the accumulation of huge debts in building the numerous giant hydro projects, the same solution of old is present here in saying that the hydro projects are self-liquidating ventures in the sense that as they start to function, all debts would be cleared simultaneously.
“There are enough safeguards with all these projects” – words from the economic affairs secretary.
Published as Business Bhutan Editorial on November 1, 2014
As for melting glaciers being a concern, it apparently should not immediately be an obstacle for the hydro projects as only 10 percent of the rivers (Bhutan) is glacier melt and years of existence under ‘climate change’ has not altered the hydrology in drastic terms.
A skeptical point of observation made is that with an ambitious target set at 10,000 MW to eventually work for the full potential of 30,000MW, the multiple dams built to function as water reservoirs would result in such high risks as man-made or artificially–induced seismicity or earthquakes.
Thanks to the terrain and geography yet again, Bhutan’s hydropower projects are all run-of-the-river projects and it need not necessarily have to heavily rely on the building of giant dams to build up water force.
A concern of old was always the accumulation of huge debts in building the numerous giant hydro projects, the same solution of old is present here in saying that the hydro projects are self-liquidating ventures in the sense that as they start to function, all debts would be cleared simultaneously.
“There are enough safeguards with all these projects” – words from the economic affairs secretary.
Published as Business Bhutan Editorial on November 1, 2014
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