Bhutan’s hydropower sector continues to demonstrate remarkable resilience and growth, solidifying its position as the backbone of the nation’s renewable energy ambitions and a key driver of regional energy trade. According to recent macroeconomic data released by the Royal Monetary Authority, the sector generated over Nu 36 billion in export sales between 2023 and April 2025, a testament to Bhutan’s commitment to sustainable energy generation and cross-border electricity cooperation.
Steady Growth in Hydropower Production (2023–2025)
Hydropower production across Bhutan’s major plants has maintained an encouraging upward trajectory, aligned with the government’s strategic goal of expanding clean energy capacity. In May 2023, the country’s total hydropower production stood at approximately 647.8 million units. Production ramped up sharply in the following months, reaching 1,132.1 million units in June and further climbing to 1,847.9 million units in July.
Peak generation occurred during the monsoon months, with August 2023 recording about 1,837.1 million units, highlighting seasonal hydrological advantages and improved operational efficiencies. This momentum continued in 2024, with July production peaking at around 1,886.4 million units , the highest for that year. Early 2025 data also reflects steady generation, with March 2025 recording approximately 351.6 million units despite seasonal variations.
Key Contributions from Major Hydropower Plants
Bhutan’s hydropower landscape is driven by a cluster of flagship plants: Basochhu (BHP), Chhukha (CHP), Dagachhu (DHPC), Kurichhu (KHP), Nikachhu (NHP), Tala (THP), and Mangdechhu (MHP). These facilities collectively underpin national generation capacity and revenue streams.
For example, the Basochhu plant has consistently delivered output in the range of 10–50 million units monthly. The Mangdechhu and Tala plants have contributed substantial volumes, particularly during peak production months, helping Bhutan meet both domestic needs and export commitments.
Robust Export Sales Strengthen Regional Ties
Electricity exports remain the cornerstone of Bhutan’s hydropower earnings. India continues to be the primary market, benefiting from Bhutan’s surplus clean energy during peak seasons. Export revenues reflect this robust demand: in May 2023, export sales stood at approximately Nu 1 billion, rising to over Nu 3 billion in both June and July, with August 2023 recording the highest monthly export at Nu 4 billion.
The upward trend continued in 2024, with July matching August 2023’s record at Nu 4 billion. Even in April 2025, export sales contributed a healthy Nu 282 million, underscoring the consistency of Bhutan’s energy trade despite seasonal fluctuations.
Domestic Consumption Supports Inclusive Development
While exports dominate revenue, domestic consumption remains a vital pillar for Bhutan’s inclusive economic growth. From May 2023 to April 2025, domestic sales exhibited steady gains, reflecting growing national electrification and industrial demand. Domestic sales were recorded at Nu 774.9 million in May 2023 and peaked at Nu 845.5 million in November 2023.
In 2024, domestic utilization rose further, with May registering the highest monthly domestic sales at Nu 1.2 billion. For April 2025, domestic sales remained substantial at Nu 735.7 million. These figures highlight the sector’s contribution to national energy security, industrial activity, and improved living standards.
Strategic Imports to Ensure Grid Stability
While Bhutan is predominantly an energy exporter, electricity imports complement domestic supply during lean seasons or planned maintenance periods. In 2023, imports were modest but peaked at Nu 1 billion in December. In 2024, imports rose to Nu 1.5 billion in January due to seasonal adjustments and regional grid balancing. For January 2025, imports were recorded at Nu 639 million, demonstrating prudent energy management to ensure uninterrupted supply.
Looking Ahead: Sustaining Bhutan’s Hydropower Leadership
Bhutan’s hydropower sector exemplifies sustainable resource management, strategic regional cooperation, and a clear vision for clean energy leadership. As the country advances new hydropower projects and modernizes transmission infrastructure, it is well-positioned to further strengthen its export capacity, diversify energy markets, and support South Asia’s transition to renewable energy.
The sector’s growth trajectory not only bolsters national revenue but also reinforces Bhutan’s commitment to balancing economic prosperity with environmental stewardship, a hallmark of its development philosophy rooted in Gross National Happiness.
Sherab Dorji from Thimphu
