Bhutan recorded a sharp decline in hydropower export earnings during the first quarter of 2026, despite an increase in electricity generation. At the same time, electricity imports surged while domestic power sales rose, reflecting growing local demand and continued seasonal dependence on imported energy.
Between January and March 2026, revenue from hydropower exports stood at Nu 201 million (M), down from Nu 402.2M during the same period in 2025, a decline of Nu 201.2M.
The fall in export earnings was consistent across all three months.
In January, February, and March 2026, export revenue totaled Nu 42.3M, Nu 52M, and Nu 106.7M, respectively. During the corresponding months in 2025, earnings were significantly higher at Nu 114.3M, Nu 97.8M, and Nu 190.1M.
In March 2026, the largest contributors to export revenue were Mangdechhu Hydropower Plant (MHP), which generated Nu 60.7M, followed by Nikachhu Hydropower Plant (NHP) at Nu 42.1M. Smaller contributions came from Tala Hydropower Plant (THP), which earned Nu 3.9M.
By comparison, March 2025 export revenue was driven largely by MHP, which generated Nu 110.3M, while NHP contributed Nu 35.8M.
The decline in export earnings comes despite higher electricity generation during the same period.
Total power generation increased from 500.8 million units in January 2026, followed by 387.1 million units in February and 561 million units in March 2026. In comparison, generation during the same months in 2025 stood at 498.6 million units, 396.7 million units, and 485.7 million units, respectively.
A major trend during the quarter was the rise in domestic electricity demand.
Domestic electricity sales reached Nu 1,202.2M in January 2026, followed by Nu 927.6M in February and Nu 1,175.7M in March. These figures were all higher than in the corresponding months of 2025, when domestic sales stood at Nu 1,197.7M, Nu 913.3M, and Nu 1,110.5M, respectively.
Energy experts say growing domestic consumption may partly explain why higher generation did not translate into stronger export earnings. More electricity appears to have been absorbed within the country rather than sold abroad, reducing the volume available for export.
At the same time, Bhutan’s electricity imports rose sharply during the first quarter of 2026.
The country imported 521.3 million units of electricity in January at a cost of Nu 1,482.3M, followed by 550.2 million units in February costing Nu 1,833.7M. In March, imports remained high at 418.9 million units, with costs reaching Nu 1,540.5M.
In comparison, electricity imports during the first quarter of 2025 were significantly lower. Bhutan imported 194 million units in January costing Nu 639M, 244.1 million units in February costing Nu 879.7M, and 195.7 million units in March at a cost of Nu 715.2M.
Overall, electricity import costs during the first three months of 2026 reached approximately Nu 4.86 billion, more than double the Nu 2.23 billion spent during the same period in 2025.
The sharp rise in imports outweighed gains from hydropower exports. While Bhutan earned Nu 201M from electricity exports in early 2026, the country spent nearly 24 times more on importing electricity during the same period.
Solar power imports also increased slightly.
Bhutan imported 8 million units of solar power in January 2026 at a cost of Nu 34.8M, 9.9 million units in February costing Nu 42.8M, and 12 million units in March costing Nu 52.3M. During the same period in 2025, solar imports stood at 7.7 million units, 9.7 million units, and 12.1 million units, respectively.
Overall, Bhutan earned less net revenue from electricity trade during the first quarter of 2026 compared to the same period last year. Although electricity generation improved, rising domestic demand and sharply increasing imports reduced the gains from hydropower exports.
Industry analysts say improving storage capacity, reducing seasonal dependence on imports, and expanding export opportunities during high-generation periods will be critical to strengthening Bhutan’s energy trade balance in the years ahead.
The latest operational data from major hydropower projects suggest that while Bhutan continues to expand generation capacity, balancing domestic demand with export competitiveness remains an increasing challenge.
Sherab Dorji, Thimphu
