Knowledge Sharing Sessions on Deviation Settlement Mechanism (DSM) and Reactive Power Management
Knowledge Sharing Sessions on Deviation Settlement Mechanism (DSM) and Reactive Power Management were conducted over 4 sessions by USAID’s South Asia Regional Energy Partnership (SAREP) program on November 20, 21, 22 and December 11, 2023 for stakeholders from Bhutan. This was a comprehensive initiative aimed at bolstering Bhutan’s power sector and facilitating cross-border electricity trade (CBET) in South Asia. These sessions were part of a collaborative effort with several Indian authorities, including the Central Electricity Authority (CEA), Central Electricity Regulatory Commission (CERC), Grid Controller of India Limited, and the Eastern Regional Power Committee (ERPC).
The primary topics of the sessions revolved around the deviation settlement mechanism, metering and accounting practices, reactive power management, and optimization strategies. Additionally, a significant focus was placed on building institutional capacity and sharing experiences from Indian states in these domains.
More than 95 stakeholders from Bhutan’s energy sector participated in the sessions. These participants represented six key organizations under Bhutan’s Ministry of Energy and Natural Resources: the Department of Energy (DoE), Electricity Regulatory Authority (ERA), Druk Green Power Corporation (DGPC), Bhutan Power Corporation Limited (BPC), Bhutan Power System Operator (BPSO), and Druk Holdings and Investments (DHI). The diverse group of attendees included representatives from generating stations, system operators, transmission and distribution departments, trading departments, regulatory commissions, and investment companies.
The Knowledge Sharing Sessions were designed to strengthen Bhutan’s electricity industry by focusing on two key goals: to support the trade of roughly 850 MW during the lean season and to promote the adoption of the Deviation Settlement Mechanism (DSM) by Bhutanese stations for long-term cross-border electricity trade with India. Covering DSM regulations, reactive power, metering, and energy accounting, the sessions provided in-depth knowledge for managing power systems and offered practical solutions like intra-state DSM charge allocation. This initiative was a collaborative effort between USAID and Indian energy authorities to strengthen institutional capacity in Bhutan for efficient CBET.
In the concluding session, representatives from the Department of Energy and Druk Green Power Corporation expressed their gratitude towards USAID and SAREP for the timely and effective training delivery. They acknowledged the session’s role in assisting them in preparing to source power from power exchanges and adopt DSM for CBET. This series of sessions represented a significant step in enhancing Bhutan’s power sector capabilities, promoting regional cooperation in energy trade, and advancing sustainable and efficient electricity management practices in the region.
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