The International Solar Alliance (ISA) has taken a decisive leap forward in its partnership with Bhutan to accelerate the country’s solar energy transition. Following a five-day high-level mission, the ISA–Bhutan Country Partnership Strategy (CPS) for 2025–2029 has formally shifted from strategic planning to full implementation, signalling Bhutan’s most significant step yet toward diversifying its energy mix and strengthening year-round energy security.
This transition marks a pivotal moment for Bhutan. While the nation is globally recognized for its hydropower-driven clean energy profile, it has increasingly felt the vulnerability of relying on a single resource, especially during the dry winter months when river flows drop and hydropower generation falls. The ISA-supported strategy aims not only to add solar capacity, but also to create the institutional, financial, and technical foundations necessary for Bhutan to build a resilient and diversified renewable energy ecosystem capable of meeting future demand.
The mission, led by ISA Director General Ashish Khanna, which took place from March 23 to 27, represents the first major milestone since the CPS was endorsed during a high-level meeting in September 2025. The CPS aligns closely with the National Energy Policy 2025 and supports Bhutan’s long-term target of installing 5,000 megawatts (MW) of solar capacity by 2040—an ambitious goal that would fundamentally reshape the country’s energy landscape.
Throughout the mission, the ISA delegation held bilateral meetings, a Steering Committee session, policy and finance workshops, and a visit to the Sephu Solar Power Plant, Bhutan’s first utility-scale solar project. Collectively, these activities helped unify stakeholders around shared priorities, identify potential implementation hurdles, and accelerate preparations for turning the CPS into practical action on the ground.
A joint round table session brought together more than 60 participants representing a broad cross-section of the energy and development ecosystem. Participants examined ways to improve policy and regulatory clarity, ensure predictable power purchase agreements (PPAs), and refine tariff-setting methodologies to create an environment conducive to investment.
One of the most tangible outcomes of the mission was the creation of a time-bound action plan with defined milestones and clear lines of accountability. This blueprint is intended to guide the implementation of the CPS from 2025 to 2029. It lays emphasis on strengthening regulatory frameworks, refining institutional capacity, and identifying a viable pipeline of solar projects. The plan also stresses the need for improved coordination among agencies to ensure that policies, technical standards, and financing mechanisms move in harmony rather than in isolation.
Financing remained a dominant theme throughout the five-day visit. The ISA team led detailed discussions on how Bhutan could leverage catalytic and blended finance to reduce risks and attract private capital into solar energy projects. For a small economy like Bhutan, where domestic financial resources are limited, such approaches are critical. Many stakeholders explored how concessional public financing could be paired with private investment to create attractive project structures. Risk-mitigation tools were also highlighted as essential for lowering the cost of capital and ensuring that investors view Bhutan as a stable and predictable market for renewable energy.
While the strategy is ambitious, its impact is expected to reach far beyond electricity generation. The ISA–Bhutan partnership places strong emphasis on social and economic outcomes, recognizing that a transition to solar energy brings opportunities for job creation, skills development, and livelihood enhancement. Rural areas, in particular, stand to benefit from community-focused solar applications such as solar-powered irrigation, agro-processing equipment, and cold-storage facilities. Such interventions could significantly enhance agricultural productivity, reduce dependence on imported fuels, and support rural enterprise development.
Knowledge-sharing was another important dimension of the mission. ISA facilitated policy dialogues, exposure to global best practices, and technical exchanges aimed at equipping Bhutanese institutions with the expertise needed to manage increasingly complex renewable energy systems. Bhutan is also expected to continue participating in ISA’s broader platforms on green hydrogen, renewable energy investments, and climate finance—spaces that will provide access to new ideas, innovations, and financing opportunities.
The partnership with ISA represents more than a technical collaboration.The work ahead is substantial, but the momentum generated by the mission has created a strong foundation. As the CPS progresses, Bhutan is not only advancing its solar ambitions but also laying the groundwork for sustainable economic growth, green jobs, and improved quality of life for its people.
Sherab Dorji
From Thimphu
