25,000 MW by 2040: Bhutan''s Bold Energy Policy 2025 and
By setting ambitious targets for hydropower expansion, embracing pumped storage, diversifying into solar and other renewables, and fostering strategic partnerships,
Titled "Empowering Energy Security & Sustainable Growth," the policy consolidates and supersedes several prior frameworks, including the Bhutan Sustainable Hydropower Development Policy 2021, Alternative Renewable Energy Policy 2013, Domestic Electricity Tariff Policy 2016, and National Energy Efficiency & Conservation Policy 2019.
According to the National Energy Policy released in June 2025, Bhutan aims to expand its total installed capacity to 25 GW by 2040 — 20 GW from hydropower and 5 GW from solar and wind. This strategy focuses on balancing export-oriented hydro projects with localised renewable generation to ensure year-round energy security.
On-grid hydropower is the country's main energy source. Bhutan operates four major hydroelectric facilities, several small and mini hydroelectric generators, and has a handful of further sites in development. Many of the small and mini hydropower plants in Bhutan serve remote villages that remain disconnected from the power grid.
Until 2002, Bhutan's energy sector was overseen by the Department of Power under the Ministry of Trade and Industry.
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