New schemes proposed for Bhutan hydropower projects

The governments of Bhutan and India have agreed to develop at least 10,000 MW of hydropower in Bhutan by 2020.

Of the envisioned 10 mega hydropower projects the two governments have agreed to develop, it was determined that the 4060 MW Sankosh hydro electric project may not be commercially viable unless part of the cost is shared by irrigation. At least 40% of the cost needs to be provided as upright grant without capitalization, or the loan component may be provided with an interest of 1% with a moratorium of 10 years.

Since the project presented difficulties with high tariff, Tehri Hydro Development Corporation Limited studied other schemes.

The group has proposed a conceptual scheme of  optimized Sankosh comprising of Sankosh with 225 m high RCC dam, Punatsangchhu-III diversion scheme with diurnal storage and Darachhu diversion scheme with no storage.