Bhutan’s 11 known geothermal hot spring manifestations have been part of daily life for centuries, used by locals mainly for bathing and balneotherapy. In recent years, Druk Holding Investments (DHI) has begun turning that long standing local knowledge into structured scientific understanding, exploring the country’s geothermal resource potential with support from the World Bank, Iceland GeoSurvey (ÍSOR), and Kenya Electricity Generating Company PLC (KenGen). The work reflects Bhutan’s broader interest in diversifying its renewable energy portfolio alongside its established hydropower base.
This exploration work sits within DHI’s broader 10X Roadmap, which identifies energy and resources as one of five priority investment areas guiding the group’s next phase of growth. As part of a roadmap built on managing the existing portfolio, pursuing future focused investments, and building a knowledge based innovation ecosystem, the geothermal initiative reflects one strand of that wider effort, applying a systematic, evidence based approach to a resource that has not previously been studied at this depth in Bhutan.
Bhutan’s geothermal potential
In preliminary exploration studies intended to progressively understand the characteristics of the resource, initial assessments undertaken by ÍSOR with support from the World Bank and Iceland’s Ministry of Foreign Affairs, collected and analyzed samples from nine geothermal sites. This established Bhutan’s first structured geothermal baseline and an initial basis for further study.
This was followed by a geoscientific reconnaissance survey by KenGen, assessing five shortlisted geothermal prospects and identifying priority areas for detailed geoscientific survey. Gasa Tshachu, Chubu Tshachu, and Gelephu Tshachu are being considered for the next phase of study, with Gelephu also presenting strategic opportunities in conjunction with the development of Gelephu Mindfulness City (GMC).
Commercial scale geothermal power generation has not yet been confirmed; parameters such as reservoir temperature, depth, permeability, sustainable fluid availability and productive capacity still need to be established through detailed geoscientific survey. However, what the studies have established is that Bhutan has sufficient geothermal indications to progress to the next stage of exploration. DHI is undertaking this through a phased, risk managed approach to progressively reduce resource uncertainty
Promising sites
Gasa, Chubu and Gelephu Tshachus have been prioritized for further detailed geoscientific survey. According to DHI, Gasa and Chubu currently show the strongest indicators from a resource temperature perspective, having emerged as important prospects through both stages of assessment. Gelephu is a lower temperature prospect but remains strategically important given its accessibility, existing infrastructure, proximity to GMC, and potential for direct use geothermal applications.
Geothermal’s significance for Bhutan extends beyond electricity generation. Unlike hydropower, it is not directly dependent on seasonal river flows, and where a viable reservoir exists, can potentially provide a relatively stable source of energy throughout the year, contributing to Bhutan’s long term objective of diversifying its renewable energy portfolio and strengthening energy security.
Meanwhile, decision to undertake deep exploratory drilling will be based on sufficient technical evidence rather than surface temperatures or preliminary geochemical estimates alone. Detailed geological, geochemical, geophysical, hydrogeological and heat flow investigations are required to develop an integrated understanding of each geothermal system and identify technically justified drilling targets.
The challenges
Geothermal resources are underground, and hot springs at the surface do not by themselves establish a reservoir’s size, depth, permeability, or productive capacity. The studies so far provide increasingly encouraging evidence, though significant information gaps remain, detailed geoscientific surveys are needed to better understand subsurface structures, possible heat sources, reservoir geometry, permeability, recharge systems and sustainable fluid availability.
This resource uncertainty is closely linked to a second major challenge: exploration and drilling cost. Deep geothermal drilling is capital intensive, and an unsuccessful well can represent significant financial exposure, which is why DHI progressively reduces geological and technical uncertainty through detailed surface exploration first.
Other considerations include difficult terrain and access, availability of specialized geothermal expertise and equipment, environmental and regulatory requirements, infrastructure needs, and the economics of each development opportunity. These challenges mirror geothermal development internationally, reinforcing the value of DHI’s phased exploration approach.
Beyond electricity
Direct utilization may represent one of Bhutan’s most immediate geothermal opportunities. Depending on a site’s temperature, flow and characteristics, geothermal heat can support greenhouse farming, agricultural and food drying, hot water supply, space heating, aquaculture, hospitality, wellness facilities, thermal bathing and tourism, opportunities that don’t require power generation temperatures to create economic value.
Gelephu Tshachu is the best example: its location and proximity to Gelephu Mindfulness City create opportunities to explore wellness and thermal spa facilities, hospitality, hot water systems, and other green urban infrastructure. DHI sees geothermal development as a potential cascaded resource, where each system’s own characteristics, not electricity generation alone, determine its development pathway.
Could geothermal be Bhutan’s next major energy resource?
The progress made over the last two phases is significant. Bhutan has moved from relatively limited information on its hot springs to a structured national baseline, geochemical assessment of multiple geothermal manifestations, reconnaissance survey of priority prospects, and identification of specific areas for detailed study.
The next phase is the critical bridge between identifying a geothermal prospect and determining whether it represents a developable resource. DHI’s approach has always been to progressively establish the technical and commercial viability of Bhutan’s geothermal resources through a systematic, evidence based exploration effort, reducing resource uncertainty and building the technical evidence required to support informed investment and development decisions. This next phase will involve detailed geoscientific survey to better define each priority system’s subsurface structure, resource conditions, permeability, fluid availability and potential for sustainable utilization, with findings providing the basis for determining the most appropriate development pathway for each prospect.
The possibility of geothermal becoming a major energy resource for Bhutan is high.
As DHI advances the exploration of conventional geothermal resources, it is also building Bhutan’s technical expertise, institutional knowledge and talent base in geothermal energy. This has included specialized training and hands on technical exposure through international partners, alongside knowledge sharing with organizations that have established geothermal development experience. Building on these efforts, DHI is planning further training this year for key personnel expected to play critical roles in the next phase of exploration and development. As DHI explores traditional geothermal resources, it is also looking ahead, building a talent and knowledge base to explore future opportunities in shallow and advanced geothermal technologies. These capacity building efforts are intended to strengthen national capability for conventional geothermal development, while positioning Bhutan to engage with the next generation of geothermal technology as it evolves.
DHI’s geothermal initiative reflects a broader approach: building technical and commercial evidence step by step, from centuries old local knowledge to a structured, evidence based exploration path. The next phase of detailed study will shape what comes next for Bhutan’s geothermal prospects.
Ugyen Tenzin, Thimphu
