Bhutan is set to take its first major step into clean-energy manufacturing, with Gelephu Mindfulness City (GMC) planning to establish the country’s first battery energy storage system (BESS) manufacturing and assembly facility, with an annual production capacity of up to 10 gigawatt-hours (GWh).
The Gelephu Mindfulness City Authority (GMCA) signed a Letter of Intent (LOI) with Patel Greentech Private Limited, an Indian clean-energy company based in Gujarat, on November 2, paving the way for the proposed investment.
The project marks a significant expansion of Bhutan’s clean-energy ambitions, moving beyond its traditional strength in hydropower generation towards manufacturing technologies that are becoming increasingly important to the global energy transition.
The proposed facility will be developed in two phases and will manufacture battery energy storage systems, which store electricity generated from renewable sources such as hydropower, solar and wind for use when production is low or demand is high.
According to GMCA, the facility will operate using Bhutan’s hydropower and undertake battery module and pack assembly, storage container fabrication, and the integration and testing of complete storage systems. The finished products will serve customers in Bhutan and the wider region. The proposed investment is expected to establish a new clean-technology manufacturing base within GMC, create skilled employment opportunities for Bhutanese and generate business opportunities for local suppliers and service providers.
Seow Hiang Lee, Co-CEO of GMCA, said the agreement was an important step towards developing a clean-technology manufacturing industry in the city.
“Battery storage is central to the global energy transition, and systems manufactured in GMC on Bhutan’s clean hydropower will carry a distinct advantage. We look forward to working with Patel Greentech Private Limited to create skilled jobs for Bhutanese and grow the local industry, in line with GMC’s vision for sustainable, high-value growth,” he said. For Bhutan, the proposed facility could open a new industrial pathway by linking its abundant renewable electricity resources with the growing global demand for energy storage technology.
Battery energy storage systems are increasingly important as countries expand renewable energy generation. Solar and wind power are dependent on weather conditions, while electricity demand fluctuates throughout the day. Storage systems help address this imbalance by retaining surplus electricity and releasing it when required.
Although Bhutan’s electricity sector is predominantly powered by hydropower, the proposed manufacturing facility could provide an opportunity to participate in the wider renewable-energy value chain rather than remaining primarily an electricity producer. The project could also create opportunities for Bhutanese enterprises to participate in manufacturing support, logistics, equipment supply and other related services. The use of domestic hydropower in the manufacturing process is expected to give the facility a distinctive clean-energy advantage.
Manimaran Krishnan, CEO of Patel Greentech Private Limited, described the agreement as the company’s starting point in GMC and indicated plans for further investment.
“This is our starting point in GMC. Going forward, we will double down on our investments,” he said. The two parties will now work towards preparing a detailed project report before proceeding to a definitive agreement. While the project is planned in two phases, the construction schedule, investment value and expected commencement of commercial production have not yet been announced.
The proposed annual capacity of up to 10 GWh would make the facility a significant addition to GMC’s emerging industrial and investment landscape. However, the final production capacity and implementation arrangements will depend on the detailed project planning and subsequent agreements.
The development also reflects GMC’s broader ambition to attract high-value industries that can generate employment, transfer technology and create new economic opportunities for Bhutanese businesses.
For Bhutan, the significance extends beyond the establishment of another manufacturing facility. It represents a potential transition from exporting clean electricity to developing products and technologies that support the global shift towards renewable energy.
The LOI was signed in Gelephu on November 2, a day after the historic raising of the 108 Jangchub Chortens, a Royal initiative of His Majesty The King.
As GMC moves from vision towards implementation, the proposed battery manufacturing facility offers an early indication of the type of industries the emerging city hopes to attract: technology-driven, internationally connected and built around Bhutan’s renewable energy strengths.
Sherab Dorji, Gelephu
