GRANT 53365-001 BHU: Alternative Renewable Energy Pilot Project - MoEA/Pro/20-21/TD-06 To pilot test the installation of small-scale solar PV systems in Bhutan

Grant No.: 9211

Executing Agency: Department of Renewable Energy

Description: Alternative Renewable Energy Pilot Project - MoEA/Pro/20-21/TD-06 To pilot test the installation of small-scale solar PV systems in Bhutan

Objective and Purpose of the Assignment
1.The Department of Renewable Energy (DRE) with the grant financing from Japan Fund for Poverty Reduction (JFPR) through Asian Development Bank (ADB) intends to pilot test the installation of small-scale solar photovoltaic (PV) systems to the marginalized rural households and integrate it to the national grid to enable them to produce energy for their own consumption while also creating income generation opportunities through sale of excess power to the grid and introducing energy- based livelihood skills.
2.This project pursues to enable the Royal Government of Bhutan (RGoB) to reduce budget for expenditure on electricity subsidies, and the households to secure reliable and sustainable energy supply and generate income by selling power to enhance their livelihoods. One of the significant programs of the Government’s rural poverty alleviation strategy is provision of a lifeline electricity supply to households with 100% subsidy for up to 100 kWh/household per month. In 2018 alone, Nu. 104.93 million was spent by the Ministry of Finance (MoF) as subsidy for the rural electricity supply, which is a significant component of the annual budget allocation for the energy sector. Although 100% subsidy for electricity is aligned with poverty reduction efforts, it is not
sustainable. Further, solar PV energy supports strong Gender Equality and Social Inclusion (GESI) elements by improving income generating sources through solar PV power trading and energy-based livelihoods with a focus on women.
3.The Alternative Renewable Energy Pilot Project aims to demonstrate viability and sustainability of solar power as an alternative energy and income source in Bhutan through (i) conducting a study on regulatory requirements for alternative renewable energy resources and preparing a tariff structure for residential solar PV systems (Output 1); (ii) assessing the adequacy of the national electricity grid and pilot-testing solar PV systems in rural villages (Output 2); and (iii) enhancing energy-based livelihood skills through vocational education and energy based livelihood equipment support (Output 3). The project has strong pro-poor, socially inclusive and gender- sensitive features. The project will directly benefit 300 poor households in rural villages. The Department of Renewable Energy will be the Executing Agency (EA) for all the three components and Implementing Agency (IA) for the Output 1 and Output 3 while BPC will be the IA for Output 2 and will be collaborating with DRE on Output 3
4.The contract period is expected to commence in the first quarter of 2021 and will continue until 31 December 2024.
5.For the interventions, DRE plans to hire an international consulting firm to assist the project management unit (PMU) and the project implementing unit (PIU) to implement project components under the grant.
6.The key objective of the assignment is to implement the planned activities under the JFPR grant in line with international best practices and as described in grant assistant report (GAR), and provide all the necessary inputs in achieving the outputs of the project.

Engagement Period: 47 months