To enhance the country’s renewable energy capacity, the Ministry of Energy and Natural Resources (MoENR) has embarked on various solar projects aimed at boosting both rooftop and utility-scale solar technologies.
Druk Green Power Corporation (DGPC) has been tasked with developing 1,000 MW of solar energy as part of the 13th Five-Year Plan. “DGPC has already initiated the implementation of a 120 MW solar project at Jamjee in Thimphu and is pursuing other large-scale projects like the 120 MW Wobthang and 120 MW Apa Amai Pang,” an official from the Ministry said.
While hydropower remains the mainstay of Bhutan’s energy system, the government acknowledges the crucial role of solar energy in addressing seasonal energy shortages.
As part of the renewable energy development roadmap, the Ministry aims to integrate 5,000 Mega Watt (MW) of solar capacity into the grid by 2040. However, the official highlighted several challenges that must be overcome, including land availability, access to finance, solar energy tariffs, and the intermittency of solar generation.
“Land suitable for solar projects is limited due to Bhutan’s rugged terrain, as large, gently sloping areas with south or southwest orientations are scarce,” the official said, adding that, the high upfront investments required for solar projects and the lengthy return period of 20–25 years pose financial barriers.
The official also shared that the existing high capital costs also make solar power tariffs less competitive in the domestic market. “To combat these challenges, the DoE and the Electricity Regulatory Authority (ERA) are facilitating interest in solar projects among private companies and individuals by providing regulatory clearances and licenses,” said the official.
As of the fiscal year 2023-2024, the De- Suung Skilling Program (DSP) Solar Initiatives has successfully implemented ground-mounted and rooftop photovoltaic (PV) solar projects, including installations at Dechencholing and the Centenary Farmers Market (CFM), which are now commissioned and grid-connected.
According to the Ministry’s Department of Energy, a rooftop solar system at Dungkar Dzong in Pangbisa, Paro, was completed in 2024, with more initiatives planned under Phase-III of the solar rollout.
Currently, the Department is also working on the ambitious 22.38 MW Sephu solar project, which is being financed by the Asian Development Bank (ADB) through a combination of loans and grants.
The project is divided into two phases, Phase I, comprising 17.38 MW, which is set for commissioning by April 2025, while Phase II, with a capacity of 5 MW, is expected to be completed by September 2025.
In addition, an official from DoE said, “In collaboration with the International Solar Alliance (ISA), the Ministry is developing a National Solar Roadmap and is actively assessing potential solar sites across the country.”
Meanwhile, in a bid to attract investments, the government has opened the solar sector to foreign direct investment (FDI). However, access to capital remains an ongoing concern that needs to be addressed to enable large-scale solar deployment in the country.
Sherab Dorji from Thimphu
