Chhukha Hydropower Project enhancing India-Bhutan energy cooperation

Business Friday 07/April/2023 10:41 AM
Chhukha Hydropower Project enhancing India-Bhutan energy cooperation

Thimphu: After the export tariff with India was revised, the Chhukha Hydropower Project will now generate additional revenue of Nu 590 M this year, Bhutan Live reported.

Bhutan's Chhukha Hydropower Plant is expected to export over 1,300 million units of electricity this year due to higher domestic demand. The revision to Ngultrum 3, an increase by 4 of 45 chhetrum (a monetary subunit of the ngultrum) a unit, was announced yesterday through a joint press release owing to Bhutan King Jigme Wangchuk's recent visit to India. The tariff revision was due in January 2021, Bhutan Live reported.

With the revised pricing, this year's revenue from electricity exports from the Chhukha Hydropower Plant will be close to Ngultrum 4 billion.

Around 1,600 million units of energy were exported to India by the Chhukha Hydropower Plant in the previous year.

The Chhukha power tariff was increased by 25 chhetrum in 2014, and another increase of 30 chhetrum was permitted in 2017.

Meanwhile, the country is expecting to export about 200 million units of electricity from the Basochhu Hydropower Plant. The plant generates about 280 million units of electricity, annually. The sale is expected to commence between June and October of this year, reported Bhutan Live.

The Indian Energy Exchange market prices, however, will determine how much money this plant will generate.