In order to ensure self- sufficiency in hydropower, DGPC in collaboration with DoE plans to harness solar energy Contact online >>
In order to ensure self- sufficiency in hydropower, DGPC in collaboration with DoE plans to harness solar energy
With demands for power rising in Bhutan, especially during the winter months, import of electricity from India began in January 2022, which has changed the whole outlook of the energy sector, from a perception of surplus electricity being exported to actually having to import power.
In order to bridge this need, the Druk Green Power Corporation Ltd (DGPC) in coordination with the Department of Energy (DoE), plans to generate an additional 300 to 400 megawatts (MW) of solar energy. Bhutan, being the net exporter of electricity, has not needed to import electricity until recently during winter months (January, February and March). But given the inadequate electricity generated throughout the winter, the country began importing power from India at the beginning of this year.
"Due to the fact that the domestic demand for electricity during the winter months when river discharges are very low exceeds the firm capacity of existing hydropower plants, we are not able to generate enough for our own consumption," Managing Director of DGPC, Dasho Chhewang Rinzin said. Additionally, there is also a question of affordability in terms of tariff.
Adding to that, Dasho said the import requirements will further increase over the years till there is some respite with one or two of the mega hydropower projects that are under construction coming online. "To defray some of the uncertainties in availability and tariffs, a viable emerging alternative for Bhutan is solar power with its falling prices," he added, underlining that a good indication of solar tariff will become available on completion of the first large solar power plant of 17MW planned at Sephu.
Elaborating further, Dasho mentioned that considering "solar capacity will be advantageous for Bhutan as it gets a lot of sunshine during the winter months when river discharges are quite low." "Therefore solar and hydro could complement each other and be considered as a hybrid solution to Bhutan''s growing energy security concerns," he added.
Further, Dasho Chhewang highlighted that it is a good time to get started with other alternative energy resources that Bhutan has in abundance, adding solar energy is one of the best alternatives. "The 300-400 MW of solar power that is being planned will complement our investments in hydropower," he said.
Meanwhile, the project will be undertaken in collaboration with the Department of Renewable Energy, which has been working with the Asian Development Bank (ADB) to expand Bhutan''s solar power capacity.
In an earlier meet with journalists, Prime Minister Dr. Lotay Tshering has also mentioned that Bhutan may see net negative production if it continues to import power for the next six to eight years.
The country''s first and the only financial newspaper, Business Bhutan Private Limited, was conceived on June 1, 2009 and officially launched on September 26 the same year.
The first-ever EIB project will support Bhutan''s new solar photovoltaic and hydropower schemes under the EU''s Global Gateway initiative
Bhutan has received it''s first-ever investment support from the European Investment Bank (EIB) of 150 million Euros. The project, supported by a 30-year loan of 150 million Euros (about USD 160 million), focuses on enhancing the country''s renewable energy infrastructure, particularly through new solar photovoltaic and hydropower schemes under the EU''s Global Gateway initiative.
The investment aims to address Bhutan''s vulnerability to climate change while expanding energy access without increasing carbon emissions. The financing will back the construction of small to mid-size run-of-river hydropower plants and solar photovoltaic generation to help the Bhutanese government diversify the country''s power mix.
The project will allow clean energy to be traded across borders and improve access to green power, supplying thousands of households with reliable and affordable energy, and allowing country to draw more profit from its renewable energy resources.
The renewable energy framework was signed during the 2024 IMF/World Bank Spring meetings by Finance Secretary Leki Wangmo and acting Managing Director of EIB Global, Markus Berndt, in the presence of EIB President Nadia Calviño.
During the signing of renewable energy framework, the EIB president said, "Bringing green, reliable and affordable energy to communities around the world, especially in more remote regions, has huge benefits not just in environmental terms, but also by improving access to health, education and economic terms."
The president also added, "That''s why I am delighted that we''ve been able to agree this 150 million Euro investment with our Bhutanese partners, under the EU''s Global Gateway initiative. We''re looking forward to working as a key partner for climate action and sustainable economic development in Bhutan."
Finance Minister Lekey Dorji welcomed the partnership with EIB, emphasizing the country''s commitment to maintaining its carbon-negative status and contributing to global climate action. "As Bhutan strives to maintain its carbon-negative status amidst rising global challenges, this partnership not only strengthens Bhutan''s renewable energy sector, but also contributes to the broader regional and global effort in combating climate change," he said.
The new project will be implemented by Druk Green Power Corporation (DGPC) and is expected to contribute significantly to climate action by increasing the country''s renewable energy capacity.
While hydropower provides a reliable source of growth, other renewable energy technologies, including solar photovoltaic, offer ways to diversify Bhutan''s electricity mix and increase resilience to changing seasonal extreme weather patterns that can adversely affect hydropower supply.
With the installation of an estimated 310 MW of hydropower, solar power generation capacity is projected to generate around 670 GWh in the first year of operation. Increasing solar power generation is also expected to reduce the potential need for energy imports during the dry season, when river flows and hydropower generation capacity is reduced.
To meet its annual power needs, Bhutan uses solar power alongside hydropower in a complimentary manner. This promotes climate adaptation by diversifying the power generation portfolio, a systemic approach that builds resilience against climate change impacts. Adding new hydropower will increase electricity generation during the dry season and allow Bhutan to exploit its renewable energy generation potential in a way that can also benefit the wider region in the wet season.
This investment in renewable power is part of the EU Global Gateway initiative which supports projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.
About Bhutan solar energy for businesses
As the photovoltaic (PV) industry continues to evolve, advancements in Bhutan solar energy for businesses have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Bhutan solar energy for businesses for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Bhutan solar energy for businesses featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
