The Bhutanese Leading the way.
The electricity sector plays an important role in the country’s economic growth, contributing 11.61% to the Gross Domestic Product (GDP) in 2023. As per the Environmental Accounts Statistics of 2024 in 2023, the total electricity supply reached 11,157.60 GWh, marking a modest 1.42% increase from the previous year’s supply. The domestic generation of electricity remained dominant, accounting for 94.43% of the total supply, while imports made up the remaining 5.57%.
Despite the increase in total electricity supply, the monetary value of this supply experienced a decline. The value dropped from Nu 27,827.90 million in 2022 to Nu 26,415.25 million in 2023, representing a decrease of 5.08 percent. This decline shows that while supply has increased, the economic returns may not be keeping pace.
A striking trend within the electricity consumption landscape is the rapid increase in industrial consumption, which surged by 77.53% in 2023. Industrial use accounted for 93.83% of total domestic consumption, with the manufacturing sector alone responsible for 64.03% of the consumption.
In contrast, household electricity consumption witnessed a significant decrease of 32.33%. Households accounted for just 6.17% of the domestic consumption, signaling a shift towards industrial reliance on the country’s electricity grid.
Among the economic sectors, the manufacturing sector recorded the highest electricity consumption at 64.03 %, followed by construction at 9.20 %, community, social, and personal services at 6.47 %, mining and quarrying at 5.36 %, transport, storage, and communication at 5.51 %, and trade at 4.24 %. The remaining sectors consumed less than 5.19 %.
In 2023, the country exported 46.10% of its total electricity supply, while domestic consumption accounted for 52.84%. Domestic consumption, however, increased substantially by 61.36% compared to 2022, reflecting the rising demand within the country’s industries.
Exports fell by 28.95% in 2023, while electricity imports surged by 151.50%, indicating a marked increase in the country’s reliance on foreign electricity during lean seasons.
