Project expected to generate annual revenue of Nu 699.74 Million
The Yungichhu Hydropower Project (YHPP) in Lhuentse has achieved approximately 78.3% physical progress as of January 2025 and is scheduled for commissioning by September 2025, according to the Druk Green Power Corporation (DGPC). The project has experienced a two-month delay, primarily due to the devastating flash floods of July 2023.
A DGPC official stated that the majority of civil works have been completed, with only interfacing work remaining between different components. “The remaining work involves integration with other project packages,” the official explained.
Similarly, the supervisory control and data acquisition (SCADA), electrical and mechanical (E and M), and hydromechanical (H and M) works are also in progress, with about 89.54% of the headworks completed and about 83.87% of the water conducting system were also completed and about 64.91% powerhouse.
The capital cost of the project, including interest during construction (IDC), is about Nu 4.1 billion (B), and the design energy of YHPP is 157.60 gigawatt-hours (GWh). Additionally, the official mentioned that the project is projected to generate an annual revenue of approximately Nu 699.74 million (M).
The total capital cost of YHPP, including interest during construction (IDC), is estimated at Nu 4.1 billion (B). The project has a design energy capacity of 157.6 gigawatt-hours (GWh) and is expected to generate an annual revenue of approximately Nu 699.74 million (M).
The electricity produced by YHPP will be integrated into the national grid, significantly improving power supply reliability in eastern Bhutan. “Lhuentse Dzongkhag will receive a more stable power supply throughout the year, and a portion of the summer surplus will be exported to India,” the official stated.
Moreover, the project is designed to connect remote areas of Bhutan to the national grid, ensuring energy security and supporting post-COVID-19 economic recovery efforts. “These objectives will be fulfilled,” the official affirmed.
The hydropower project has significantly boosted economic activity in Autsho and Maedtsho Gewogs, creating employment and increasing demand for local goods.
“Many locals are directly employed and actively contributing to the project. There has been a surge in the consumption of locally produced vegetables, dairy products, and rice,” the official highlighted.
Additionally, local residents have leased houses, land, and vehicles to the project, further stimulating the local economy. Infrastructure improvements include:
Road maintenance enhancements.
Construction of a 120-foot-long, 24-DSR Bailey bridge over the Yungichhu River at Ungar, benefiting the public.
An upcoming pedestrian suspension bridge over Newanchhu, part of the project’s Corporate Social Responsibility (CSR) initiative, replacing a bridge destroyed by the July 2023 flash floods.
YHPP is a run-of-the-river hydropower project located near Onngar Village in Maedtsho Gewog, approximately 34 km from the Mongar-Lhuentse national highway. Yungichhu is a tributary of the Kurichhu, which in turn is part of Bhutan’s largest river basin, the Drangmechhu. The project’s intake is located at an elevation of 1706 meters above sea level, while the powerhouse is situated at an elevation of 1200 meters above sea level at the confluence of the Yungichhu and Wambur Rivers. The intake and powerhouse sites are 12 km away from the Gortshom Gewog center, according to the corporation.
The project sites are accessible via multiple routes from Indian border towns, including Nganglam, Samdrup Jongkhar, Gelephu, and Phuentsholing. The shortest transport route for equipment and materials is 217 km via Nganglam-Gyalpoizhing.
With its imminent commissioning, the Yungichhu Hydropower Project is set to enhance Bhutan’s energy production, improve regional power supply, and contribute to economic development. The project not only strengthens the nation’s renewable energy sector but also ensures tangible benefits for local communities and the broader economy.
By Sherab Dorji from Thimphu
