Bhutan shares its carbon-negative expertise in the global arena

In an exclusive interview, His Excellency Lyonpo Loknath Sharma, Minister of Energy and Natural Resources, Bhutan, shares his views on the significance of India Energy Week 2023, the major theme of Bhutan’s participation, and the region’s critical role in the global energy transition.

How important is India Energy Week 2023, both to Bhutan and the global energy community? How do you see this event shaping the future of the energy industry?

India Energy Week 2023 is important globally as it brings the global energy community to one platform to discuss the emerging global issues, and expedite strategic plans towards the road to net zero. The intent of this event clarifies the importance and the urgency to have such arrangements/occasions where a wide range of players in the energy field come into one forum to discuss, negotiate, and plan for a sustainable economy while protecting the environment.

Although every individual country has responsibility to protect and preserve the ecosystem, if countries and leaders come together, share the duties, and put in concerted efforts, the success rate will increase and the impacts of the collective efforts will ultimately be humongous. Therefore, we have a common goal and IEW 2023 will enable leaders/expertise to aim towards the direction which will firm up plans for a better place for generations to come.

Since early eras, the energy sector has been driving the economy and shaping the landscape of countries’ profile at large, and we cannot undermine that energy is both a driver and an enabler in the economy. Energy has always been a contentious subject and for leaders to come to a single point of decision is very demanding. Such a situation persists even today; the pressure is booming where the end cannot be ascertained. Hence, it is vital for us to be mindful that energy brings economic acceleration, but it comes with both positive and negative consequences; it helps drive the economy but it possesses grave danger to its sustainability.

For Bhutan, it is important to understand how the region will be linked, grid stability and access towards energy sharing and energy security of the region. We are already a forerunner in terms of net zero, but we need to fully understand the challenges of energy security, sustainability, affordability and available technology to develop. I am of the view that this event shall clearly provide what the world could look ahead to, and the innovative solutions, energy mix and technology available. It must be able to provide clarity towards future growth.

Could you elaborate on the major theme of Bhutan’s participation at India Energy Week 2023?

Although Bhutan is a carbon negative country (Bhutan sequestrated 9.4m tonnes of carbon against its emission capacity of 3.8m tonnes) and is one of the least contributors to global warming, the brunt of global climate change impact is unequivocally experienced by Bhutan. Our natural water reservoirs in the form of glaciers are melting, posing imminent threats from glacier lake outburst. Climate change is an existential threat for humanity and the planet.

Through participation in IEW 2023, Bhutan intends to share experiences and challenges faced from a small carbon-negative country’s perspective. With the growing dependency on fossil fuel consumption in Bhutan due to unavoidable economic activities, the country needs to learn about pertinent global energy issues and gain insights on how to tackle such evolving problems by interacting with world energy leaders, preparing for regional connectivity, and promoting cross-border energy trade through various multilateral and regional initiatives, thereby ensuring energy security in the region.

Bhutan is also keen to keep abreast of emerging energy technologies to pursue mitigation measures concurrently in attaining sustainable economic growth. It is of paramount importance we adopt advanced technologies in the constantly changing environment of clean energy transition.

As a pioneer of clean energy and the world’s first carbon-negative country, what are some of the recent developments in Bhutan’s energy landscape? What can the world and global energy community learn from Bhutan’s experience?

The South-east Asian region is blessed with abundant and diverse resources of energy and Bhutan is endowed with huge potential of hydropower resources among others. Bhutan, resolved by its commitment to remain carbon neutral at all times, all out efforts are underway to drive the green economy in the truest sense. Our power generation is from 100% renewable hydropower with current installed capacity of over 2GW, well on track to achieve 5GW within a few years.

To diversify our energy supply basket, we are keenly looking at developing other renewable energy resources such as solar and wind, including hybrid systems, reservoir, and pump storage to balance the seasonality issues of run of the river schemes.

At the same time, to enhance reliability and affordability, we are also focusing on strengthening internal grid systems and modernising distribution systems through advanced technological intervention. We are also exploring electric and hydrogen fuel-driven mobility so as to reduce fossil fuel consumption.

Key challenges remain in meeting exponential growth of domestic demand, especially during lean seasons. Therefore, to address peak demand in the country, regional interconnection through a dynamic market mechanism would enable Bhutan to have secured energy supply. Our experience in developing and investing in clean and renewable energy from the very beginning is worth learning.