The country’s revenue from the export of power has decreased by Nu 86.92 million (M) as of October this year compared to the revenue generated in the same month last year.
The decline in export sales can be attributed to Bhutan’s increasing dependency on domestic power consumption during the winter months. In previous years, the country was able to export more power than it consumed domestically.
From January to October 2023, the country generated Nu 17.132 billion (B) in revenue, while during the same period this year, it exported power worth Nu 17.045B. Export sales fluctuated over the months, with notable spikes in the summer months (July and August). The highest export sales were recorded in August, amounting to Nu 4 billion (B), and the lowest in April, with just Nu 18.88M this year.
The Mangdechhu Hydroelectric Project Authority (MHPA) was the largest exporter, generating Nu 2.4B in September this year, followed by the Chhukha Hydropower Plant (CHP) at Nu 806.45M. Seasonal fluctuations affected export sales, as January 2023 saw exports of Nu 75.19M, while January 2024 reflected a similar low of Nu 50.28M due to winter conditions.
However, the summer months, especially from May to August, tend to contribute the most to production and sales, reflecting increased rainfall, water flow, or operational effectiveness during these periods. Similarly, domestic sales demonstrated an upward trend, with the country generating Nu 7.8B from January to October this year, compared to Nu 4.9B generated during the same period last year. This increase indicates greater power utilization by domestic users.
Among the hydropower plants, the Tala Hydropower Plant (THP) generated the highest revenue from domestic sales at Nu 783M, followed by MHPA with Nu 760M and CHP with Nu 133M, among others.
Export sales displayed seasonal fluctuations, while domestic sales growth closely followed production, indicating higher hydropower demand and usage within domestic markets.
Total power production from the major hydropower projects reached 7,866 million units this year until October, while power production in 2023 for the same period was recorded at 9,564 million units. Monthly production figures exhibited variability, particularly with a notable surge during the summer months. The peak production was recorded in July with 1,847.93 million units, while the lowest output occurred in January with 333.06 million units last year.
This year, production has shown a promising trajectory, with total production climbing to 9,503.38 million units for the same period, representing a substantial 33.5% increase. January 2024 continued the trend of low production with 309.37 million units but demonstrated an overall upward trajectory through the months, with February, March, and April producing 264 million units, 345 million units, and 524 million units respectively.
Meanwhile, in an earlier interview, an official from Druk Green Power Corporation (DGPC) said, “Bhutan’s power export and domestic consumption reveal a complex interplay influenced by seasonal variations. While the country has seen a decline in export revenue due to increased domestic consumption during winter months, the trend towards higher domestic sales signifies a growing demand for electricity within the country.”
In addition, he mentioned that the fluctuations in export sales underscore the impact of seasonal changes, with peak production occurring during the summer months.
“Despite the existing challenges in exports, the notable increase in total power production and domestic sales indicates a positive trajectory for the hydropower sector,” he added.
Looking ahead, it will be crucial for Bhutan to balance its domestic needs with its export potential, ensuring sustainable growth in both areas.
Sherab Dorji from Thimphu
