A Comprehensive Review of Bhutan''s National Energy Policy
Multi-purpose reservoirs and pumped storage with solar hybrids are prioritized for firm power. Solar and other renewables (wind, geothermal, biomass) are promoted via PPPs,
To improve Bhutan's energy security while strengthening resilience to water variation and climate change, it is required to diversify power generation sources and types, including (i) solar farms, rooftop and floating solar, and agrivoltaics; and (ii) storage and pumped storage hydropower and small hydropower. 4 H. Nagai et al. 2017.
Energy in Bhutan has been a primary focus of development in the kingdom under its Five-Year Plans. In cooperation with India, Bhutan has undertaken several hydroelectric projects whose output is traded between the countries.
According to the National Energy Policy released in June 2025, Bhutan aims to expand its total installed capacity to 25 GW by 2040 — 20 GW from hydropower and 5 GW from solar and wind. This strategy focuses on balancing export-oriented hydro projects with localised renewable generation to ensure year-round energy security.
Bhutan's energy sector operations have separate commercial management and ownership from the government. The state-owned Druk Green Power Corporation (DGPC) owns and operates power plants while the Bhutan Power Corporation, also state-owned, performs transmission and distribution.
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