Full Breakdown
Bhutan Turns to Solar to Bridge Winter Power Shortfalls
By Drooid · · How we work
Core Shift: Expanding Solar Amid Hydro Winter Gaps
Bhutan’s electricity strategy is pivoting from its historic reliance on run-of-river hydropower to a growing portfolio of solar photovoltaics. The move is driven by a pronounced seasonal mismatch: during the dry winter months river flows fall dramatically, cutting hydro output by roughly 80 % and leaving a shortfall that must be covered by imports from India. Climate-induced glacier retreat adds urgency to diversifying the energy mix.
Background & Context
Since the 1970s Bhutan has exported hydropower, earning billions and achieving a carbon-negative status. A 2008 pledge to reach 10,000 MW of hydro capacity stalled because of financing constraints and high per-megawatt costs (about US $1.5 million). Winter demand has risen sharply, prompting imports that cost Nu 7.09 billion in the most recent season.
Data & Statistics
- Hydropower capacity: ~3,700 MW; winter output drops ~80 %.
- Winter demand: 1,500 MW (up from 400 MW).
- Import cost: Nu 7.09 billion per winter.
- Solar projects: Dechencholing – 4.45 MW; Sephu – >22 MW.
- National solar target: 5,000 MW by 2040 (one-fifth of the 25,000 MW total goal).
- Near-term goal: 30 MW of solar installed by 2027, largely rooftop.
- Financing: $160 million ADB loan for 310 MW of new solar projects.
Official Statements & Responses
Chhewang Rinzin, managing director of Druk Green Power Corp., said hydro capacity collapses in winter, creating a “significant shortfall” now met by Indian imports. Norion Renewable Energy’s senior engineer, Rinzin Galley, noted that ground-mount projects require extensive land, a challenge in Bhutan’s terrain. Finance Minister Lekey Dorji framed the ADB loan as a “decisive move” to attract private investment and accelerate the Renewable Energy Master Plan.
Why It Matters
Expanding solar offers a seasonal counterbalance to hydro, potentially reducing costly imports and preserving Bhutan’s carbon-negative claim by limiting reliance on India’s coal-heavy grid. The diversification also supports new revenue streams, such as data-center operations in the planned Gelephu Mindfulness City, and strengthens energy security for a construction-driven economy.
Verbatim Quotes
- “Our plans are to develop about 5,000 megawatts,” — Chhewang Rinzin
- “When we do solar projects on the ground mount, it takes a huge amount of area to get certain capacity,” — Rinzin Galley
- “We are quite aware that climate change will affect us, that the glaciers will keep receding,” — Chhewang Rinzin
What’s Next
The ADB loan has been finalized, and implementation of the Renewable Energy for Climate Resilience Project is underway. Bhutan aims to install 30 MW of solar by 2027 and to reach the 5,000 MW solar target by 2040, with 310 MW of new capacity already earmarked for development.