The Basochhu I and II power plants, near Wangdue Phodrang, were built with Austrian technical and financial support. Basochhu I has a capacity of 24 MW and Basochhu II with a capacity of 40 MW. The installation is fully computerized. The turbines in the facility are supplied with water in the event of a fall. [31] Basochhu is operated by Druk Green. The Sixth Five-Year Plan (1987-1992) was the first to give a significant share of the State budget (13.1%) power generation projects. At $9.5 billion, the sixth plan was significantly more expensive than its predecessors. Among the objectives was to strengthen Bhutan`s autonomy, as it was hoped that Bhutan would begin to use markets in neighbouring countries with production, mining and hydropower projects. As a result of rising costs, Bhutan has postponed some projects requiring high capital requirements until the seventh development plan (1992-1996), which has not resulted in significant changes in the overall sectoral evolution. [53] The Kurichhu hydroelectric project on the Kurichhu River in Mongar district supplies eight districts (Mongar, Lhuentse, Trashigang, Trashiyangtse, Pemagatshel, Samdrup Jongkhar, Sarpang and Zhemgang) to eastern Bhutan. Like the Chukha project, Kurichhu was fully funded by India, with 60 per cent grants and 40 per cent loans.
[31] [38] In accordance with the agreement, construction of the Kholongchhu Hydro Electric Power (HEP) project will begin shortly and be completed in the second half of 2025. The Indian government would provide as a subsidy the share of Bhutanese CFPB`s capital in the joint venture company. Once the project is commissioned, the joint venture`s partners will lead it for 30 years, the so-called concession period, after which full ownership will be transferred to the Bhutanese government, which in the meantime obtains the power of the project as a « royal ». Electricity rates, a sticky subject, are negotiated closer to the completion of the project. In 2008, there were 24 smaller mini-macro-hydro plants, producing a total of about 4 MW of energy. The largest of them were Trashigang (Rangjung) and Bumthang (Chhumey). [6] [17] Bhutan`s first mini-hydropower plant was built in Thimphu in 1967; it operated until 1988. [6] Until the 1970s, Bhutan built many other small hydroelectric power plants.
In the 1970s, Bhutan and India began to join major projects to electrify large areas of Bhutan and meet transnational energy needs. [31] At the event, Jaishankar and his Bhutanese counterpart both spoke of the importance of the development of hydroelectric power within the Indo-Bhutanese sphere of cooperation, which she described as « mutually beneficial ». In 2010, pilot wind turbine programs were implemented to study the feasibility of using wind energy to mitigate waterfalls during the dry winter season. It is located in Wangdue Phodrang, in the western part of Bhutan. [1] [50] Bhutan`s installed capacity is approximately 1.6 gigawatts (GW). [3] More than 99 per cent of the country`s installed capacity comes from hydroelectric power plants, or 1,614 MW of the country`s total capacity of 1,623 MW in 2018. [3] Bhutan`s installed hydroelectric capacity will be 1,615 megawatts from 2016 for an estimated hydroelectric potential of 30,000 megawatts (of which 23,760 megawatts are technologically and economically feasible). [27] [28] Hydroelectric production decreases considerably in winter as mountain streams freeze. [29] Hydroelectric power with the grid is the country`s main source of energy. [30] The 600 MW River Race Project is located on the lower Kholongchhu River in Trashiyangtse district in eastern Bhutan.