Thimphu, Bhutan – Engineer Rinzin Galley stands on a platform overlooking a former military shooting range on the edge of Bhutan’s capital Thimphu, now home to a gleaming field of solar panels. With abundant waterways, Bhutan has long relied on hydroelectric power to meet its electricity needs and stay carbon negative — absorbing more planet-warming gases than it emits. But demand is growing, and in winter, when rivers run low before the mountain melt arrives, Bhutan already relies on imported Indian electricity.
Climate change is also threatening the future of the glaciers that feed those rivers, adding impetus to a push for energy diversification. The company’s biggest project to date is the Dechencholing solar farm on former military land, with an installed capacity of 4.45 megawatts. Dechencholing is one of several solar fields developed in recent years, including the country’s first megaproject — Sephu, with over 22 MW capacity.
That is relatively modest, especially compared to the vast solar fields installed in neighboring China. But it represents a new direction for Bhutan, where hydropower exports account for up to 15% of gross domestic product, according to the World Bank. Bhutan can currently produce around 3,700 MW from hydro, but that capacity falls by around 80% during the winter, he said.
Winter demand has increased to 1,500 MW from 400 MW, creating a significant shortfall that is currently being met by electricity imports from India. Officials attribute part of the growing demand to a construction boom, but Bhutan has also bet on bitcoin mining to boost revenue. A planned special economic zone known as the Gelephu Mindfulness City is expected to host energy-hungry data centers.
The problem was already clear back in 2008, when a goal of generating 10,000 MW from hydropower by 2020 was agreed. But the plan ran into a series of obstacles, including financing. Solutions have included liberalizing foreign investment rules and increasing solar targets in the energy mix.
The country now aims for 25,000 MW by 2040, with solar accounting for a fifth of that. But finding sufficient space for projects is challenging given Bhutan’s largely mountainous terrain. The country’s high altitudes, circuitous routes and roads frequently damaged by landslides pose further problems.
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