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Chhukha Hydropower Project to generate an additional Nu 590 M after tariff revision

April 6, 2023
in Business, Other Stories, Sci/Tech
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The Chhukha Hydropower Project will now generate additional revenue of Nu 590 M this year after the export tariff with India was revised. The revision to Nu 3, an increase by 45 chhetrum a unit, was announced yesterday through a joint press release issued following His Majesty’s visit to India recently. The tariff revision has been due since January 2021.

The Chhukha Hydropower Plant expects to export over 1,300 million units of electricity this year.

The new tariff will take revenue from the export of electricity from Chhukha Hydropower Project to almost Nu 4bn this year.

Last year, the Chhukha Hydropower Project exported over 1,600 million units of electricity to India. However, with domestic demand increasing, the export numbers are projected to be lower this year.

In 2014, the Chhukha power tariff was revised by 25 chhetrum, followed by another revision of 30 chhetrum 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 start between June and October of this year.

However, the revenue generation from this plant will depend on the market prices in the Indian Energy Exchange.

The government requested the Indian Government to allow Bhutan to sell power from Basochhu during the summer surplus months into the Indian Energy Exchange.

India agreed to consider Bhutan’s request according to the joint press release.

Kinzang Lhadon

Edited by Sherub Dorji

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