Hydropower sector expands with two new projects set for
Bhutan is set to strengthen its renewable energy portfolio with the upcoming commissioning of two key small hydropower projects—Yungichhu and Burgangchhu—by the
With construction now proceeding smoothly, the project is expected to be completed at a cost of Nu 4.3 billion and produce 260 MU of electricity per year. “These developments are more than energy assets; they're long-term economic investments,” a senior DGPC official told Business Bhutan.
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.
Since then, both governments have successfully constructed and commissioned 336 MW Chukha HEP, 60 MW Kurichhu HEP, 1020 MW Tala HEP and 720 MW Mangdechhu HEP, enabling Bhutan increase its electricity generation capacity to around 2,451 MW, of which 2,136 MW was developed under the four Inter-Governmental projects. 2.
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