Bhutan has become the first country in the world to endorse and launch a Country Partnership Strategy (CPS) with the International Solar Alliance (ISA), charting a roadmap to accelerate solar power development over the next five years.
The CPS sets out a comprehensive, results-driven framework that aligns with ISA’s renewed vision while supporting the Royal Government of Bhutan’s (RGoB) ambition to add 5,000 megawatts (MW) of solar capacity by 2040.
The partnership will advance Bhutan’s National Solar Roadmap by focusing on four areas: scaling up solar deployment to strengthen energy security, policy and regulatory readiness, institutional capacity building through training and development, and mobilizing financing for solar projects.
In its initial phase, the strategy aims to develop 600 MW of solar capacity, combining utility-scale projects with decentralized rooftop systems for homes, businesses, and institutions.
Ashish Khanna, Director General of ISA, emphasized the significance of Bhutan’s role as the first country to finalize the partnership strategy.
“We are aligning with Bhutan’s national solar roadmap, which targets 1,000 MW by 2030 and 5,000 MW by 2035,” he said. “The country has the potential to generate nearly 12,000 MW of solar power. Hydropower drops sharply in winter when demand peaks, making diversification essential. Solar energy provides a sustainable alternative.”
He highlighted the upcoming Solar Technology Application Resource Centre at the College of Science and Technology as a hub for training, knowledge-sharing, and innovation. “This will create opportunities for Bhutanese youth, from entrepreneurship to green jobs,” he added.
Recognizing that financing is critical, ISA will work with partners such as the Asian Development Bank (ADB) and the World Bank to secure concessional funds. Innovative mechanisms like renewable energy funds and guarantee schemes are also being explored to support local businesses.
Policy frameworks are being developed in close collaboration with the government. A national rooftop solar policy and net metering regulations are expected soon, enabling households and businesses to install rooftop systems and sell excess power back to the grid.
ISA is also preparing a concept note on solar-powered EV charging and electrification, at the request of Prime Minister Lyonchhen Tshering Tobgay. The proposal, expected within four months, will integrate clean mobility solutions into Bhutan’s energy transition.
The initiative aims to mobilize USD 500 million in investments while extending solar applications to rural livelihoods. Solar pumps, lift irrigation systems, dryers, and cold storage facilities could help farmers adapt to labor shortages, shifting rainfall patterns, and limited arable land.
“Solar-powered irrigation, dryers, and storage are key to addressing Bhutan’s agricultural challenges,” said Yonten Jamtsho, Director of the Department of Agriculture. “They offer solutions to food security while creating value-added opportunities.”
ISA officials echoed this view, stressing that Bhutan’s limited arable land and reliance on imports make solar-powered agriculture vital. “For example, specialty fruits could become a high-value export with proper preservation and storage,” an official from the ISA noted.
Development partners are also stepping in. UNICEF announced plans to solarize 60 schools initially, expanding to 230 by 2030. “Solar energy could save nearly USD 1 million in fuel and firewood costs, allowing more resources to be directed toward improving education quality,” said UNICEF Country Representative Rushnan Murtaza.
Similarly, UNDP is promoting private sector participation by linking entrepreneurs with blended finance through the Bhutan Trust Fund for Environmental Conservation.
From the private sector, the Bhutan Chamber of Commerce and Industry (BCCI) has been actively involved in shaping trade laws and promoting investment. BCCI officials called for tax credits, low-interest loans, and demonstration models to encourage adoption.
“Farmers and small businesses need stronger market linkages to see real benefits,” a BCCI representative said. “Technology and digital platforms can help connect them to markets and ensure fair prices for their produce.”
The ISA–Bhutan partnership is not just about generating more electricity—it is about reshaping Bhutan’s economic and social fabric in ways that extend far beyond the energy sector. By expanding solar power, Bhutan is addressing three pressing national priorities at once: food security, energy reliability, and employment for its youth.
For agriculture, solar-powered irrigation, dryers, and cold storage could help farmers overcome unpredictable rainfall, post-harvest losses, and limited arable land. Reliable energy in rural areas means farmers can irrigate fields more efficiently, store perishable produce longer, and diversify into high-value crops. This directly strengthens Bhutan’s food self-sufficiency and reduces its dependence on imports.
On the energy front, solar provides the resilience that hydropower alone cannot guarantee. With river flows declining during winter just as demand peaks, Bhutan’s dependence on energy imports has been growing. Solar, particularly rooftop and decentralized systems, offers a sustainable solution by balancing seasonal shortages and ensuring greater year-round security.
Perhaps most transformative is the employment dimension. As Bhutan invests in solar training centers and local capacity-building, new opportunities will emerge for technicians, entrepreneurs, and small businesses. From rooftop installations in Thimphu to solar pumping systems in remote valleys, a new green economy could take root—helping address youth unemployment while supporting the country’s broader development goals.
If Bhutan continues on this path, it could establish itself as a regional model for renewable energy in mountainous economies. Few countries face terrain and connectivity challenges as daunting as Bhutan’s. If it succeeds in integrating solar into its energy mix while maintaining environmental sustainability, it will not only secure its own future but also offer lessons for other nations across the Himalayas and beyond.
In this sense, the ISA partnership is more than an energy strategy—it is a blueprint for sustainable nation-building, where technology, tradition, and policy converge to power Bhutan’s next chapter of growth.
Nidup Lhamo from Thimphu
