Bhutan’s hydropower sector continued to demonstrate robust performance in the second quarter of 2025, with electricity generation reaching 3,643 million units (MU)—a sharp increase of 2,262 MU compared to the 1,381 MU produced in the first quarter of the year.
The latest figures, released by the National Statistics Bureau (NSB) in its Socio-Economic Indicators Report, reaffirm Bhutan’s position as a regional clean energy hub and highlight the sector’s growing role in driving economic growth and regional cooperation.
Power Plant Contributions
The country’s major hydropower projects recorded significant gains.
Tala Hydropower Plant’s output rose from 371 MU in Q1 to 1,002 MU in Q2, marking a 170% increase, while Mangdechhu Hydropower Plant’s production climbed to 895 MU, up by 201% compared to Q1.
Likewise, Punatsangchhu II generated 934 MU, a 154% rise from the first quarter. Kurichhu, Dagachhu, and Nikachhu Plants also generated 110 MU, 82 MU, and 125 MU respectively, all recording notable increases in output.
However, Chhukha Hydropower Plant produced 435 MU, showcasing stable and sustained performance.
Export Growth
Exports also saw a remarkable surge. Bhutan exported 1,746 MU of electricity in Q2 2025, up from just 5.87 MU in the first quarter. Exports to India jumped from 5.86% to nearly 48% of total production, reflecting deepening regional energy integration.
Tala exported 485 MU and Chhukha exported 324 MU during the same period, while scheduled exports from Dagachhu increased to 79 MU, up from 40 MU in the first quarter. Similarly, exports from Nikachhu rose to 17 MU.
As always, Mangdechhu emerged to be the major contributor to the surge in exports.
Domestic Consumption
Domestic sales also registered modest growth, reaching 1,909 MU in Q2, compared to 1,827 MU in Q1—an increase of 82 MU.
Strategic Importance
Hydropower remains the backbone of Bhutan’s economy, contributing more than 20% of GDP and generating the bulk of government revenue through electricity exports to India. The sector not only underpins domestic energy security but also supports Bhutan’s commitment to carbon neutrality and sustainable development.
Bhutan currently has an installed hydropower capacity of over 2,300 MW, with several projects under construction, including Punatsangchhu I and II. Under its long-term vision, the government aims to scale generation capacity to 25,000 MW by 2050, positioning the country as a regional leader in clean energy while creating tens of thousands of jobs.
Experts say the strong Q2 performance signals a promising outlook for 2025, especially given the government’s emphasis on expanding renewable energy exports, diversifying into solar and wind, and fostering deeper energy cooperation with India.
Sherab Dorji, from Thimphu
