Bhutan has entered into an agreement with PTC India for importing power from India to meet the hilly nation’s power requirements in the imminent dry winter season.
In a release, PTC India said that it has entered into an agreement with Bhutan-based Druk Green Power Corporation Ltd for purchase of power from the Indian power market. This power will be used to meet the hilly nation’s requirement during the dry winter season.
The Designated Authority (DA) for cross border power trading has accorded an approval for import of power by Bhutan. Further, Bhutan has also executed the agreement with settlement Nodal Agency for settlement of grid operation related charges.
With all requisite approvals, Bhutan will now start procuring up to 600 MW of power, through PTC, from the Indian power market.
A step forward
“Over the years, Bhutan has been exporting hydro power to India. The increasing domestic demand in Bhutan now requires power imports during the dry winter season. This PPA will help address such energy requirements. This agreement is a step forward towards PTC’s endeavor to strengthen the regional power markets for energy security and sustainability in South Asia.”
PTC India mandate
It may be mentioned that PTC India, among other things, has also been mandated by the Government of India to trade electricity with Bhutan, Nepal and Bangladesh. The trading activities undertaken by PTC include long term trading of power generated from large power projects including renewables as well as short term trading arising as a result of supply and demand mismatches, which inevitably occur in various regions of the country.
Designated Authority
It may be mentioned that the Union power ministry, on December 18, 2018, issued guidelines for cross-border trade of electricity, formally known as “Guidelines for Import/Export (Cross Border) of Electricity-2018”
Further, on December 24, 2018, the Union power ministry appointed Member (Power System), Central Electricity Authority (CEA), as Designated Authority (DA) for carrying out the functions prescribed under the said guidelines.
The DA has been mandated to lay down procedure for facilitating approval and other matters related to cross-border trade of electricity between India and neighbouring countries.
Also read: PTC India To Monetize Investment In Subsidiary, Appoints SBICAPS
Bhutan hydropower assets
Established in 2008, Druk Green Power Corporation Limited (DGPC) is an electricity utility company that operates and maintains hydropower assets of Bhutan. DGPC was formed through the merger of three hydropower corporations of Basochhu, Chhukha and Kurichhu. Tala was merged with DGPC in 2009. DGPC, according to information available on its corporate website, has installed hydropower capacity of around 1,600 mw.
Featured photograph shows the 64-mw Basochhu hydropower of Druk Green Power Corporation Ltd. (Photo: DGPC)
