The Bhutanese Leading the way.
The International Solar Alliance (ISA), a treaty-based organization of 124 countries, signed a Country Partnership Strategy with the Royal Government of Bhutan on 16th September, making the country one of the first countries worldwide to finalize such a strategy.
The partnership will align with the country’s National Solar Roadmap, which was also unveiled on the same day and sets targets of 1,000 megawatts of solar power by 2030 and 5,000 megawatts by 2035.
A nationwide solar rooftop policy is being prepared, aiming to make solar systems as accessible as common household appliances, with financing options and net metering arrangements that would allow households and businesses to sell excess power back to the grid at fair rates. This policy, along with technical standards and financing products, is expected to unlock the rooftop solar market in Bhutan and is likely to be announced within the next one to two months.
The Country Partnership Agreement between Ministry of Energy and Natural Resources and ISA was signed on 14th April 2024 and they have been working closely since.
The Ministry of Energy and Natural Resources (MoENR) said that the strategy could bring major economic and environmental benefits, including savings of USD 42.6 million (mn) in energy imports, a reduction of 677 kilolitres of fossil fuel use, and the cutting of 0.7 mn tonnes of greenhouse gas emissions. It is also expected to generate around USD 1.2 mn in carbon credits.
The Country Partnership Strategy (CPS) also aims to add 620 megawatts of solar power capacity while creating 3,460 new jobs in Bhutan.
Solar energy is considered important for Bhutan because hydropower production decreases significantly in winter, when the country requires the most energy. In addition, global glacial melts may reduce hydropower in the future, making it necessary for Bhutan to diversify its energy sources. Bhutan has an estimated solar potential of nearly 12,000 megawatts.
Under the partnership strategy, Bhutan and ISA will focus on four main aspects of solar development as outlined in the National Solar Roadmap. The first involves developing projects of about 600 megawatts over the next four to five years, both at utility scale for grid supply and through solar rooftops. The initiative will also encourage Bhutanese households, shops, commercial establishments, industries, and farmers to adopt solar rooftops and solar pumps for irrigation and rural applications. The strategy further includes support for policies and regulations, as well as training and entrepreneurship through the newly established Solar Technology Applications Resource Center (STAR-C) at the College of Science and Technology in Phuentsholing. Two pilot storage projects have also been completed, laying the groundwork for scaling up solar adoption in the future.
The Director General of ISA, Ashish Khanna, said that that one of Bhutan’s key challenges is creating opportunities for young people, and that STAR-C will generate opportunities for entrepreneurship and jobs. Financing will also play a crucial role, with ISA working alongside partners such as ADB and the World Bank to tap into concessional funding. In addition, innovative financing mechanisms, such as guarantee funds or renewable energy funds, are being considered to support local businesses.
The five-year partnership also includes exploring strategies for solar-based electric mobility. At the request of the Prime Minister, ISA will prepare a concept paper on how solarization and EV charging infrastructure can be applied, including for the Gelephu Mindfulness City. This concept is expected to be ready in three to four months.
