The proposed 180-megawatt (MW) Bunakha Hydropower Project has received strong public backing following a consultation meeting in Chhukha, marking a significant step towards one of Bhutan’s most strategically important hydropower developments aimed at strengthening energy security, enhancing winter electricity generation and maximising the country’s renewable energy potential.
The public consultation, held at Bunakha Lhakhang on July 19, brought together officials from the Chhukha Dzongkhag Administration, Druk Green Power Corporation (DGPC), Bhutan Power Corporation Limited (BPC), Bhutan Telecom and more than 100 residents from Geling and Chapcha gewogs, the communities expected to be most directly affected by the project.
The meeting provided local residents with detailed information on the project’s design, implementation strategy, environmental and social impacts, mitigation measures and resettlement plans, while also creating a platform for affected communities to raise concerns and offer feedback before the project proceeds to the next stage.
According to DGPC, the Bunakha Hydropower Project is among Bhutan’s highest-priority hydropower investments because it will incorporate a storage reservoir, enabling the country to generate more electricity during the dry winter months when river flows decline sharply and power production from conventional run-of-river plants falls.
Unlike most of Bhutan’s existing hydropower projects, which rely solely on natural river flows, the Bunakha project will feature a reservoir extending approximately 17 kilometres upstream from the dam. The stored water will regulate river discharge, allowing electricity generation to continue more consistently throughout the year.
Once commissioned, the project is expected to generate around 746 gigawatt-hours (GWh) of clean electricity annually.
Beyond its own generation capacity, the regulated flow from the reservoir is expected to significantly improve the performance of downstream hydropower stations along the Wangchhu basin. These include the 336MW Chhukha Hydropower Plant, the 1,020MW Tala Hydropower Plant, and the 570MW Wangchhu Hydropower Project, which is currently under construction.
Energy experts say this cascading benefit will maximise the productivity of existing hydropower assets while strengthening Bhutan’s ability to meet rising domestic electricity demand and maintain export earnings.
During the consultation, DGPC presented the findings of the project’s Environmental and Social Impact Assessment (ESIA), covering biodiversity, water quality, forest resources, cultural heritage, socioeconomic conditions and other environmental considerations.
Officials also outlined comprehensive environmental management plans designed to avoid, minimise and mitigate potential impacts during both construction and operation.
The consultation also focused on the proposed Resettlement and Rehabilitation (R&R) Framework, which details land acquisition procedures, compensation mechanisms, livelihood restoration programmes and a grievance redress system for households affected by the project.
Resettlement emerged as one of the key issues raised by residents. DGPC and officials from the Chhukha Dzongkhag Administration assured participants that the extent of resettlement required for the Bunakha project would be relatively limited compared to several of Bhutan’s earlier large hydropower developments.
Officials emphasised that all affected households would receive support in accordance with government policies and that every effort would be made to minimise disruptions to livelihoods and community life.
Residents also sought clarification on employment opportunities during construction, improvements to local roads and public infrastructure, environmental safeguards, worker safety and long-term community benefits.
DGPC reaffirmed its commitment to implementing the project in a transparent, environmentally responsible and socially inclusive manner, adding that consultations with local communities would continue throughout the project’s development.
Following the positive public endorsement, DGPC will now proceed with obtaining statutory clearances from the relevant regulatory agencies before construction begins. Subject to the required approvals, construction is expected to commence by the end of 2026 or in early 2027.
For many residents, the consultation represented the culmination of decades of anticipation. Studies for the Bunakha Hydropower Project began in the mid-1990s, and many community members said they had waited nearly three decades to see the project move towards implementation.
Residents welcomed the government’s decision to advance the project, expressing optimism that it would create employment, improve local infrastructure and contribute to regional development while strengthening Bhutan’s renewable energy sector.
The Bunakha project also aligns closely with Bhutan’s broader energy strategy of expanding renewable generation while addressing seasonal power shortages.
During winter, reduced river flows significantly lower electricity generation from run-of-river plants, forcing Bhutan to import electricity to meet domestic demand. By storing water during periods of higher flow and releasing it strategically during the lean season, the Bunakha project is expected to improve the reliability of electricity supply while reducing seasonal generation fluctuations.
The project is also expected to strengthen Bhutan’s capacity to meet growing domestic electricity consumption while increasing electricity exports, one of the country’s most important sources of revenue.
By optimising water releases into the Wangchhu basin and enhancing generation at downstream power stations, the project will maximise the value of Bhutan’s hydropower resources and reinforce the country’s position as a leading producer of clean, renewable energy.
As Bhutan continues to invest in strategic energy infrastructure, the Bunakha Hydropower Project is emerging as more than just another power plant. It represents a long-term investment in national energy security, economic resilience and sustainable development, while reaffirming hydropower’s central role in powering Bhutan’s future.
Sherab Dorji, Thimphu
