Bhutan’s renewable energy sees growth with new solar projects

The solar projects Sephu and Jamjee, led by Druk Green Power, will advance Bhutan’s solar targets with up to 49% private ownership allowance.

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Bhutan targets 5,000 MW solar capacity by 2040, starting with projects in Sephu and Jamjee by 2025.

Bhutan targets 5,000 MW solar capacity by 2040, starting with projects in Sephu and Jamjee by 2025. Image Credit/Source: Hoan Ngọc/Pexels

Bhutan’s renewable energy sector is expanding with new solar projects, including the 17.38 MW utility solar plant in Sephu, scheduled for completion by March 2025. An additional 5 MW capacity will increase its annual energy generation to 31 million units by September 2025. Funded by the Asian Development Bank at a cost of Nu 1.5 billion (~$17.4 million), the project is managed by the Department of Energy under the Ministry of Energy and Natural Resources. Druk Green Power Corporation (DGPC), headquartered in Thimphu, has also completed a feasibility study for a 120 MW solar plant in Jamjee, set to begin construction in 2025. Bhutan aims to generate 20 GW by 2040, including 5 GW from solar, addressing seasonal hydropower shortfalls. DGPC leads these initiatives, allowing up to 49% private sector ownership, supported by evolving policies and frameworks. 

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