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Sourcing Bhutanese hydropower

Shamsul Huq Zahid | Monday, 18 July 2016


Bangladesh for long has been seeking to import hydropower from neighbouring Bhutan. It wanted to import ready electricity, if available, or implement joint venture project for the purpose. But for one reason or other its expectation has remained unfulfilled.    
However, it could be a reality, finally as three nations--- Bangladesh, India and Bhutan---in their first-ever tripartite meeting are expected to discuss the possibility of implementing a joint venture 1,125 megawatt Kuri hydropower project in Bhutan at an estimated cost of about US$1.0 billion.
The issue was discussed and agreed at the 11th joint steering committee meeting on Bangladesh-India power sector cooperation, held in Dhaka last week.
Earlier, India and Bhutan endorsed the Bangladesh proposal on the joint-venture hydropower project. A draft memorandum of understanding (MoU) has already been prepared for discussion in the upcoming tripartite meeting. However, date of the proposed meeting has not yet been fixed.
Bhutan has always been willing to sell power to Bangladesh at the 'cheapest' rate possible. The economic affairs minister of Bhutan while visiting Bangladesh some months back had expressed such willingness during a courtesy call on the Bangladesh Prime Minister.
Bhutan, a mountainous country, is known for having great potential to generate a substantial volume of hydropower. According to an estimate it has the potential to generate about 30,000 MW of hydropower.  At the moment, it is exploiting only 5.0 to 6.0 per cent of that potential.
Giant neighbour, India, is both investor and buyer of the Bhutanese hydro-power. The revenue earned from the export of power constitutes most part of the gross domestic product (GDP) of Bhutan. Under a protocol signed between the two countries, India has agreed to provide both financial and technical support to create capacity to generate 20,000 MW of hydropower by the year 2020 and import all the surplus power.
If Bangladesh can be a party to hydropower generation in Bhutan, it would be able to partially solve its own nagging power problem.
Until recently, India appeared to be lukewarm about Bangladesh's eagerness to source hydropower from Bhutan. But the scenario, it seems, has changed following the formal start of transshipment of Indian goods through Bangladesh recently. The ratification of the BBIN (Bangladesh, Bhutan, India and Nepal) motor vehicle agreement by Bhutan was one indicator. The upcoming tripartite meeting on joint venture hydropower project in Bhutan is another.
Bangladesh's interest in sourcing hydropower from Bhutan has also been substantiated by a study carried out by the Japan International Cooperation Agency (JICA). The JICA on the basis of the findings of the survey has suggested Bangladesh to invest in joint venture power projects in the BBIN countries. The study has found that such investment can help Bangladesh to get at least 8,000 MW of power from Bhutan, India and Nepal by the year 2035. The JICA, the largest provider of low-cost fund to Bangladesh since its independence, also offered financial support to Bangladesh in any future joint venture power projects.
If Bangladesh could be sure of getting power as projected by the JICA, it could largely avoid installation of coal-based power plants that are harmful to environment.
However, it is unlikely that Bangladesh would get the opportunity to import such a large volume of power from Bhutan alone. But, if not hydropower, Bangladesh and India can jointly build power plants on both sides of their borders much to their mutual benefit.  
Bangladesh needs to be more proactive than other neighbouring countries since it faces severe power deficit. The situation is now somewhat better than before. But the improvement has been achieved under a sort of stop-gap-arrangement. The rental power plants, which have generated enough of controversies, have largely contributed to the improvement in power situation. The government, however, has to find out long-term solution to the problem.
The government has extended twice the life-span of the rental power plants that have been a severe burden on the government as well as power subscribers. Those would have to be phased out soon and adequate power should come from large and medium power plants, installation of which is always cost-intensive.
Some large power plants are now in the process of installation. When completed, those would help meet, to some extent, an ever-increasing demand for power. The government is mainly focusing on coal-based large power plants. One such plant is being installed at Rampal, near the Sundarbans, under joint venture arrangement with an Indian power company. The project has given rise to serious environmental concern. But the government has dismissed such concern and is going ahead with the project. It has also signed a deal with Russia to build a nuclear power plant at Rooppur with Russian technical and financial assistance.
The availability of hydropower from Bhutan at an affordable cost would help lessen a part of the worries involved in the execution of fossil-fuel based power plants.
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