The country’s electricity export in August this year saw a notable decline compared to the same period in the past two years. According to the Royal Monetary Authority’s latest monthly statistical bulletin, the country exported only Nu 1bn worth of electricity in August this year. The decline in export is accompanied by a drop in production.
The export of electricity in August this year is twice as low compared to the same period in 2022 and 2023 which saw exports exceeding Nu 4bn.
The decline in the export of electricity is corresponding to the decrease in total production levels for August this year which also plummeted to 437 million units.
The country’s major hydropower projects including Basochhu, Chhukha, Dagachhu, Kurichhu, Tala, and Mangdechhu, continue to play a crucial role in the growth of the economy.
Export tariffs for power sold to India play a crucial role in determining the revenue generated by these projects.
According to the latest revisions, Chhukha Hydropower Plant exports electricity at Nu 2.55 per unit, Kurichhu and Tala hydropower plants sell power at Nu 2.23 per unit. The Dagachhu Hydropower Corporation sells electricity at the highest tariff of Nu 3.399 per unit.
This year, in the month of April, May and June, domestic sales shot up generating a domestic revenue of more than Nu 1bn.
For domestic consumption, a tiered pricing system is in place. Royalty energy, which constitutes 15 per cent of the total production allocated to the government, is priced at a highly subsidised rate of Nu 0.13 per unit.
Industrial users, primarily supplied by Kurichhu Hydropower plant, pay Nu 1.20 per unit.
According to the Managing Director of DGPC, Dasho Chewang Rinzin, the decrease in export and the increase in domestic sales is due to increase in domestic consumption with new industries coming up. He added that this trend will continue.
Samten Dolkar
Edited by Phub Gyem
