Source: UNISDR Disaster Risk Reduction
Building energy resilience
Water also plays a vital role in Bhutan’s hydropower sector, which serves as the backbone of both its energy generation and exports.
Some 70%
of the energy generated is exported to India.
Hydropower revenues
account for about 25% of the total government revenue.
Offsetting Bhutan’s
balance of payments with India and accounting for roughly 7.5% of Bhutan’s GDP.
Indeed, Bhutan’s human and economic development is closely tied to the growth of its hydropower. Some 99.7 percent of households have access to electricity, which is also essential for hospitals, schools, and communication networks. Besides supporting domestic sectors, hydropower also enables industrial growth.
But Bhutan’s hydropower sector faces increasing risks linked to the growing challenges to its water supply. Climate change is expected to exacerbate challenges such as droughts, glacial lake outburst floods (GLOFs), heavy rainfall, and flash floods. Additionally, Bhutan’s seismic activity makes hydropower assets vulnerable to loss and damage.
The country’s electricity transmission and distribution network is also at risk from geological events like earthquakes and landslides, as well as from fires and flash floods. At the same time, this network itself is a potential fire hazard, which could endanger surrounding infrastructure, settlements and forests.
The Assessment identified several resilience measures, including some which are already well-advanced and which reflect a proactive approach to risk reduction. Bhutan is exploring investments into reservoirs and pumped storage projects, for example, to increase its water storage capacity.
However, the Assessment also highlighted several areas for improvement. It noted gaps in grid stability, real-time monitoring, and the ability to respond quickly to transmission and distribution outages. To address these challenges, the assessment recommended upgrades to safety standards and the introduction of mandatory risk reporting as a regulatory requirement for electricity transmission and distribution. Establishing feedback loops and mechanisms will also help to improve the network’s resilience.