The Bhutanese Leading the way.
Capital allocation rises sharply to support restoration after the October 2025 floods, equipment replacement, and long-term reliability of Bhutan’s hydropower plants
The Druk Green Power Corporation (DGPC) has significantly increased its budget for the operation, maintenance, rehabilitation, and upgrading of its hydropower plants in 2026, reflecting a stronger focus on ensuring the long-term reliability and efficiency of Bhutan’s hydropower infrastructure.
According to DGPC, the corporation operates the Chhukha, Tala, Kurichhu, Mangdechhu, and Basochhu hydropower plants, along with several micro and mini hydropower plants located across the country.
Although Nikachhu and Dagachhu are also operated by DGPC, they are managed under separate Special Purpose Vehicle (SPV) entities because of their investment arrangements. Meanwhile, the operation and maintenance of the Punatsangchhu II Hydropower Plant continues to be carried out by the Punatsangchhu II Hydroelectric Project Authority (PHPA II).
DGPC stated that the budgets for the operation and maintenance of its power plants, as well as the upgrading, refurbishment and rehabilitation works aimed at extending the lifespan of these facilities, are incorporated into the corporation’s annual budget. These activities are financed through revenue generated from electricity sales.
During 2025, DGPC spent approximately Nu 2.865 billion (bn) on the operation and maintenance of its hydropower plants. The expenditure covered employee remuneration, insurance of power plant assets, routine operation and maintenance expenses, and other miscellaneous costs. For 2026, the corporation has increased the budget allocation under the same expenditure category to Nu 3.139 bn.
The budget for upgrading, refurbishment, and rehabilitation has recorded an even sharper increase. In 2025, DGPC utilized Nu 827.95 mn, mainly for the procurement of stores and assets and capital works in progress. For 2026, the corporation has allocated Nu 2.320 bn to this category. According to DGPC, the higher allocation will primarily support restoration works following the October 2025 floods and the procurement of spare runners required for the continued operation of its hydropower plants. These investments are expected to strengthen the reliability of generating units and support the long-term performance of Bhutan’s hydropower infrastructure.
DGPC clarified that the figures do not include provisions for wheeling charges, financing costs, or depreciation. The corporation stated that it makes substantial annual budget allocations for the direct operation and maintenance of its hydropower plants, while also investing in capital works to upgrade, rehabilitate, and refurbish existing facilities to ensure their continued safe and efficient operation.
