To save energy consumption and to increase revenue, renewable energy department will distribute energy-efficient LED bulbs from July this year.
The department’s director, Mewang Gyeltshen, said that Nu 42 million(M) was approved in the 12th Plan to rollout the light emitting diodes throughout the country.
Consultation is ongoing with Bhutan Power Corporation for the distribution of the bulbs.
The consumers have to bear a part of the cost of the bulb.
The demand for the bulbs was low in the rural areas because of the free 100-unit energy.
The department is planning to create awareness on the advantages of using such LED bulbs and saving energy, which could increase the demand for such bulbs.
“By creating a demand at numerous points, we hope there would be many players from the private sector to keep the price of the bulbs competitive,” Mewang Gyeltshen said.
Energy savings in any form is expected to enhance disposable income for households, which will in turn positively affect gender equity as most households are operated by women.
The investment in measures of efficiency and conservation and increased disposable income would contribute to employment creation in energy and other sectors, contributing to the country’s green growth strategy.
Mewang Gyeltshen said that such measures could directly benefit the economy by freeing up energy resources, generating additional revenue through export of saved electricity, and reducing imports of petroleum products.
This is also expected to relieve government’s fiscal burden on energy subsidies and reallocate resources for other developmental activities.
“Our plan is to ultimately replace all incandescent bulbs in the country,” Mewang Gyeltshen said.
It is estimated that around 700,000 incandescent bulbs light some 140,000 households across the country, consuming about 168,000 units of energy, worth Nu 390,000, everyday.
Replacing all incandescent bulbs in the country could save up to 61.320M units, worth about Nu 142M.
The 26,500 LED bulbs bought at a cost of Nu 4.7M made an annual saving of two million units of energy. This saving would earn an additional income of Nu 4.64M at the average domestic tariff price of Nu 2.32 per unit.
The consumers can expect to save Nu 14,000 before a bulb is replaced since a bulb lasts for about 20 years.
Bhutan can earn Nu 621M from saving electricity consumption in industry, build.