Thimphu, Bhutan – Bhutan, a South Asian country historically reliant on hydropower, is increasingly expanding its solar energy sector as it seeks to diversify its electricity supply amid growing demand and concerns over climate change.

Traditionally, Bhutan has generated the majority of its electricity from abundant mountain waterways, maintaining a carbon-negative status by absorbing more greenhouse gases than it emits. The nation’s hydroelectric projects currently produce about 3,700 megawatts (MW), supplying both domestic needs and exports that contribute roughly 15 percent of its GDP. However, hydroelectric output diminishes by approximately 80 percent during winter months when river flows decrease before the spring thaw, creating a seasonal shortfall.

To meet increased winter demand, which has risen from 400 MW to 1,500 MW amid a construction surge and plans to develop energy-intensive industries such as bitcoin mining, Bhutan imports electricity from India. These imports underscore the urgency of diversifying energy sources as climate change threatens the glaciers that feed Bhutan’s rivers, potentially jeopardizing future hydroelectric generation.

Solar energy projects are emerging as a key component of this diversification strategy. Norion Renewable Energy, a domestic firm, has spearheaded initiatives such as the Dechencholing solar farm in Thimphu, built on a former military shooting range, with a current capacity of 4.45 MW. This development is part of a broader expansion that includes the Sephu solar project, Bhutan’s first large-scale installation, which has a capacity exceeding 22 MW.

While these solar capacities are modest compared to neighboring China’s extensive arrays, Bhutan’s energy officials consider them foundational to a broader plan. Druk Green Power Corporation, the national power utility, aims to increase total generation capacity to 25,000 MW by 2040, with solar energy expected to account for roughly 20 percent of that total. This marks a significant shift from the earlier 2008 goal of generating 10,000 MW solely from hydropower by 2020, a target that has faced challenges such as financial constraints.

“The cost of hydropower is substantial, at about $1.5 million per megawatt, which is a major hurdle for a small economy,” said Chhewang Rinzin, managing director of Druk Green Power Corporation. The utility has sought to overcome these barriers by liberalizing foreign investment policies and raising the emphasis on solar development within the energy mix.

Despite this strategic pivot, terrain and logistical challenges persist. Bhutan’s mountainous landscape limits the availability of suitable land for ground-mounted solar arrays. Infrastructure difficulties, including roads prone to landslides and the high-altitude environment, further complicate project implementation.

To address capacity building, Bhutan has emphasized training local solar engineers through initiatives such as the De-suung royal skilling program. Norion Renewable Energy reports having trained approximately 450 volunteers under this scheme to develop domestic expertise in solar technology installation and maintenance.

As Bhutan balances environmental stewardship with economic growth ambitions, its solar energy push reflects both the practical need and the policy will to create a more resilient and diversified power system.