Hydropower is one of the most significant sectors for Bhutan. Equally, 2025 saw a series of significant moments in the sector. It was a transformative year for Bhutan’s renewable energy sector, a year defined by bold projects, strategic international partnerships, and innovative initiatives that have positioned the kingdom as a regional powerhouse in clean energy. From massive hydropower plants to cutting-edge solar projects, Bhutan has made remarkable strides in diversifying its energy portfolio, securing its energy future, and advancing sustainable development goals.
The year began with a major milestone in large-scale hydropower development. The 600 MW KhorloChhu Hydropower Project moved forward with contracts worth Nu 16.8 billion signed in January. Companies including Jaiprakash Associates Limited (JAL) and Construction Development Corporation Limited (CDCL) were entrusted with constructing the dam and powerhouse. Once completed, KhorloChhu will significantly boost Bhutan’s hydropower capacity and contribute to regional energy sharing, reinforcing Bhutan’s role as a key energy supplier in South Asia.
In May, Prime Minister Tshering Tobgay inaugurated the 18 MW Suchhu Hydropower Plant, built in just 27 months at a cost of Nu 2,556 million. Suchhu is part of a vision by His Majesty the King to bring reliable electricity to remote communities, improving living standards and enabling economic opportunities in previously underserved areas.
Strategic partnerships played a crucial role in Bhutan’s hydropower expansion. In September, an agreement was signed with India’s Adani Group to jointly develop the 570 MW Wangchhu Hydropower Project, a run-of-river scheme aimed at strengthening Bhutan-India energy cooperation. Meanwhile, the 118 MW Nikachhu Hydropower Plant, blessed by His Holiness the Je Khenpo, officially opened in December. Expected to generate over 75 million units annually, Nikachhu will provide surplus electricity to India during summer months, cementing Bhutan’s position as a reliable regional energy partner.
The ambitious 1,125 MW Dorjilung Hydropower Project, supported by Tata Power of India, made significant progress in public consultations and infrastructure development, including the construction of access roads and bridges, preparing for civil works in early 2026. This project represents a major step toward expanding Bhutan’s renewable energy capacity while enabling regional power exchange and sustainable economic growth.
On November 12, 2025, His Majesty The King and the Prime Minister of India, Narendra Modi inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project. On the same occasion a memorandum of understanding (MoU) was signed between the Ministry of Energy and Natural Resources and the Ministry of New and Renewable Energy of India on cooperation in the field of renewable energy.
Meanwhile, 2025 also saw the preparatory works to resume dam construction for the 1,200 MW Punatsangchhu-I Hydroelectric Project. Begin. Construction of the dam is expected to start within the next two to three months. Since 2019, work has been halted due to geological issues.
Bhutan also advanced its solar energy sector in 2025. The groundbreaking of the 120 MW Jamjee Solar Photovoltaic Plant in Maedwang Gewog, South Thimphu, marked a significant milestone. Prime Minister Tobgay emphasized the project’s role in diversifying Bhutan’s energy mix and reducing reliance on hydropower during dry seasons. Once operational, the plant will generate approximately 197 GWh annually, powering communities while minimizing environmental impact.
In April, Bhutan collaborated with Germany’s Dornier Suntrace GmbH to complete the feasibility study for a 100 MW solar farm, backed by USD 100 million from OPEC. The project aims to achieve financial closure by June 2025 and is part of Bhutan’s ambitious target of 5,000 MW of solar capacity by 2040, complementing the country’s extensive hydropower portfolio.
The 25 MW Begana Small Hydropower Project also made strides through public consultations in August. Designed to enhance energy security and provide drinking water to Thimphu and surrounding communities, the project exemplifies Bhutan’s commitment to local participation, environmental stewardship, and culturally sensitive development.
Bhutan strengthened its renewable energy alliances in 2025. In May, a landmark MoU with India’s PTC India Limited created a joint venture to develop hydropower projects, reinforcing the long-standing energy trade relationship and building a pipeline of clean energy exports. Later, a MoU with Thailand’s B.Grimm Power explored collaborative solar and hydropower projects, attracting international investment and expertise.
Financial partnerships also underpinned these developments. Bhutan secured a Nu 1.39 billion loan from Kuwait’s Fund for Arab Economic Development to support the Begana project, reflecting the kingdom’s credibility and reputation as a trusted partner in sustainable development.
The benefits of Bhutan’s energy achievements extended beyond electricity generation. Local communities reported job creation, improved infrastructure, and socio-economic upliftment, while stakeholders emphasized the importance of preserving Bhutan’s cultural and natural heritage alongside development. These projects reflect a balance between modern energy needs and the kingdom’s environmental and cultural priorities.
Bhutan’s approach to renewable energy also demonstrates leadership in climate resilience. By diversifying energy sources and investing in solar as well as hydropower, the country reduces its carbon footprint, strengthens energy security, and positions itself as a model for sustainable development in the region.
As 2025 concludes, Bhutan’s renewable energy sector stands on a firm foundation of innovation, collaboration, and progress. Ongoing hydropower and solar projects, strategic international partnerships, and community-focused development are set to propel Bhutan toward its vision of carbon neutrality, energy self-sufficiency, and regional leadership.
The achievements of this year reflect not only Bhutan’s engineering and technological capabilities but also its commitment to inclusive, sustainable, and responsible development. With a strong pipeline of projects and continued international cooperation, Bhutan is poised to maintain its position as a trailblazer in renewable energy, creating a legacy of clean power, economic growth, and environmental stewardship for generations to come.
2025 will be remembered as a year when Bhutan electrified its future, combining hydropower prowess, solar innovation, and strategic vision to illuminate the path toward a sustainable and prosperous tomorrow.
Sherab Dorji
From Thimphu
