Bhutan 2025 Energy Storage Project

How will Bhutan's hydropower plan impact its energy needs?

Bhutan plans to raise its total power generation capacity to 25,000 MW by 2040 (up from 2,300 MW). The country seeks diversification beyond hydropower, including solar and geothermal energy, to meet its growing energy needs. The partnership will harness Bhutan’s natural hydropower resources, benefiting both countries’ energy demands.

How will the new EIB financing help Bhutan?

The new projects, to be implemented by Druk Green Power Corporation, will contribute to climate action, helping Bhutan to strengthen its energy security and increase the use of renewable energy. The new EIB financing will support the installation of an estimated 310 MW of hydropower and solar power generation capacity.

What is Bhutan doing to diversify its energy mix?

The development is part of Bhutan’s plans to diversify its energy mix beyond traditional hydropower to include solar and geothermal sources. The strategy involves diversifying project structuring and financing through strategic partnerships. This collaboration is supported by the governments of Bhutan and India.

Will EIB finance hydro power plants in Bhutan?

EIB framework loan to finance hydro power plants (expected in the range of 25 - 75 MW) and solar PV plants in Bhutan. The European Investment Bank (EIB), the world’s largest multilateral bank and leading global financier of renewable energy, signed its first-ever investment support for Bhutan today.

What is the EIB project in Bhutan?

The first-ever EIB project in Bhutan, one of just three net carbon-negative countries in the world, supports new solar photovoltaic and hydropower schemes under the EU’s Global Gateway initiative. The 30-year loan for €150 million will unlock an estimated 310 MW of new renewable energy generation to serve communities in remote regions.

Will solar power help Bhutan overcome hydropower challenges during dry season?

This expansion of Bhutan’s solar photovoltaic capacity will help overcome hydropower challenges during the dry season. The European Investment Bank (EIB), the world’s largest multilateral bank and leading global financier of renewable energy, signed its first-ever investment support for Bhutan today.