Electricity consumption in Bhutan is currently measured using two types of electrical energy meters; ‘electromechanical induction type’ and ‘electronic energy type’ meters. Currently, BPC assigns large numbers of people to manually read this energy meter, making it a tedious and inefficient task. According to the Population & Housing census of Bhutan report 2017, Thimphu has 25,644 households in total. The number has been growing exponentially every year. Each household consumes an average of 4500kWh per year and spends BTN 1200 during winter months and BTN 600 during summer months on electricity. Looking at the average energy consumption by the individual households, it is important to look for a solution to optimize energy usage and become an energy efficient city.
The energy requirements of cities are complex and abundant. In consequence, modern cities should improve present systems and implement new solutions in a coordinated way and through an optimal approach by profiting from the synergies among all these energy solutions. The intermittency of renewable sources and the increasing demand represent important energy challenges and the electric energy management system in smart cities is the solution to address these modern city issues. Therefore, a model incorporating modern technology for energy management is necessary to intervene in this conventional energy management system. In order to address issues in terms of electric energy management, four main energy-related activities that have been called ‘intervention areas’ can be proposed: Generation, Storage, Infrastructure and Facilities.