The Units were synchronized with Bhutan’s National Grid coinciding with the 117th National Day
Bhutan celebrated its National Day with a landmark achievement in its hydropower journey as Unit-1 and Unit-2 of the 1,020 MW Punatsangchhu-II Hydroelectric Project (PHPA-II) were successfully synchronized with the national grid. The event, held at the project site, was attended by Lyonpo Gem Tshering, Minister for Energy and Natural Resources, along with senior officials, project representatives, and contractors.
The synchronization of the first two units adds a capacity of 340MW to Bhutan’s power generation. Once all six units of the project are operational by 2025, the country’s total hydropower capacity will increase to 3,465 MW. The project aims to bolster Bhutan’s electricity generation during the lean season, reducing dependence on imports from India and further boosting exports.
The synchronization process, which began in August 2024, encountered delays due to water seepage in the powerhouse. Inspections and subsequent grouting and penetron coatings in key infrastructure resolved the issue, allowing the commissioning process to continue.
Currently, the synchronized units are undergoing mandatory Grid Code testing. Once completed, the System Operator will issue a Commercial Operation Date (COD) certificate. Until then, electricity generated will be classified as “infirm energy,” used to stabilize the grid.
With an installed capacity of 170MW per unit, and with daily output expected to reach 4.3MU of electricity, the project is financed by the Government of India (GoI) with 30% grant and 70% loan terms at 10% annual interest. Initially estimated at Nu 37 billion (B), the project cost was revised to over Nu 94.45B.
Situated along the Punatsangchhu River, the project features a dam 20 km downstream of Wangduephodrang Bridge and an underground powerhouse 15 km downstream at Kamechu. The site is accessible via Thimphu (94 km), Paro International Airport (125 km), and nearby Indian railheads such as Hasimara.
Initiated under the 10,000 MW by 2020 hydropower vision, the bilateral agreement for PHPA-II was signed on July 30, 2010, by the then Minister for Economic Affairs, Lyonpo Khandu Wangchuk, and India’s Minister for External Affairs, S.M. Krishna. The foundation stone was jointly laid by Bhutan’s the then Prime Minister, Jigme Y. Thinley, and India’s Prime Minister, Dr. Manmohan Singh.
The project’s authority was established in 2010 to oversee its implementation, which began on December 17, 2010. Although originally scheduled for completion in seven years, delays have pushed the timeline until December this year.
Authorities said that PHPA-II will significantly enhance Bhutan’s economic landscape by generating additional export revenues through surplus power sold to India. With a focus on timely commissioning of the remaining four units, the project stands as a symbol of Bhutan’s commitment to harnessing renewable energy and fostering regional cooperation.
Bhutan and India’s partnership in the hydropower sector has a rich history. To date, the collaboration has resulted in four major hydroelectric projects: Chhukha (336 MW), Kurichhu (60 MW), Tala (1,020 MW), and Mangdechhu (720 MW), which collectively generate 2,136MW. PHPA-II is the latest testament to this enduring bilateral relationship, promising significant contributions to Bhutan’s energy sector and export revenues.
Tashi Namgyal From Thimphu
