Bhutan: Promoting Energy Security and Transition Project

Energy / Renewable energy generation - solar

Climate and energy security. Bhutan's key economic drivers are hydropower export, tourism, and agriculture. Although the tourism business was significantly affected by the coronavirus disease (COVID-19) pandemic, hydropower exports have relatively been stable and the resultant foreign currency earning has been sustained. However, hydropower generation is dependent on the availability of water resources, which can be varied by weather and climatic conditions. This means that Bhutan's high dependency on hydropower (99.7%) renders the country vulnerable to climate change impacts, thereby raising energy security concerns.

Energy diversification. On concerns about climate and energy security, the government intends to diversify energy sources to improve energy independence. Bhutan's Sustainable Hydropower Development Policy, 2021 stipulates to enhance energy security and develop value chains based on alternative clean energy. Renewable energy technologies such as solar and wind power have different generation profiles and patterns during the year and daytime, which can be complementary in a mix of power sources with hydropower. Thus, Bhutan's Druk Green Power Corporation (DGPC) plans to fast-track solar development up to 200 MW over the next 3 years. For this purpose, ADB intends to finance Bhutan's first utility-scale solar photovoltaic power plant (17 MW), and support subsequent ground-mounted solar power projects in several locations. Solar power will compensate for power deficits in the dry season and increase hydropower export in the wet season by using additional solar power for domestic consumption. Given this advantage, solar power generation can be promoted and diversified further from ground-mounted solar photovoltaic power type to floating solar and rooftop solar power types.

Especially, Bhutan's floating solar power in the existing hydropower reservoir areas can bring multiple favorable conditions, including higher solar panel efficiency due to cooling effect on the water surface, no land acquisition requirement and conflict with fishing purposes, close access to grid systems within the premise of the hydropower stations, and complementary operations with hydropower's flexible generation. Rooftop solar can also be expanded in urban areas on the rooftops of buildings and houses for various applications such as electricity and water heating as well as cooking. Given the nascent stage of solar power development in Bhutan, this new technological and business areas can be demonstrated by the public sector to gradually boost private sector mobilization and create new job opportunities, particularly for women for operations and maintenance activities. The alternative domestic energy resources will help Bhutan promote energy transition and improve energy security.

Bhutan's diversification of clean energy sources promoted.

Readiness for project development in alternative energy resources enhanced.

Floating solar development plans prepared

Rooftop solar business and financing models developed

Floating and rooftop solar knowledge sharing and awareness improvement among stakeholders promoted