The Bhutanese Leading the way.
The government aims to commission a total installed hydropower capacity of 3,101 MW with a combined design energy output of 13,801 GWh by 2031.
This includes several large and small hydropower projects currently under construction across the country, with commissioning timelines ranging from 2025 to 2031.
Among the major undertakings is the 1,200 MW Punatsangchhu-I Hydroelectric Project, initially scheduled for completion in 2015. Excavation of the dam began in 2009, but a major landslide at the dam site in July 2013, followed by a secondary slide in 2016 and reactivation in 2019, halted progress.
Stabilization measures were implemented over several years, and both the Government and the Government of India (GoI) have been exploring alternative options, including a barrage. Additional geo-technical studies were completed in March 2024, and discussions are ongoing. A holistic report from the CWC is expected in June 2025. As of April 2025, 87.8 percent of the project is complete, with Nu. 87 billion disbursed, and commissioning is targeted for 2031.
The 1,020 MW Punatsangchhu-II Hydroelectric Project, facing geological and pandemic-related delays, began commissioning in late 2024. By March 2025, three generating units had been synchronized with the grid, and the remaining units are set to be commissioned by July 2025. The revised project cost is estimated at Nu 94.4 billion (bn). As of April 2025, 98.9 percent of the project was completed, with Nu 87.9 bn disbursed.
The 600 MW Khorlochhu project, initially a joint venture between DGPC and India’s Satluj Jal Vidyut Nigam (SJVN), experienced prolonged delays due to a deadlock between shareholders. DGPC eventually took over the project and entered a new partnership with Tata Power Company Limited (TPCL) in October 2024, holding 60 % equity while Tata Power holds 40 %.
The project cost has been updated to Nu 69 bn, with a construction schedule of 59 months. Power Purchase Agreements were signed for both domestic and export supply. Ceremonial blasting of key components and the signing of the Concession Agreement took place on 19th November 2024. As of December 2024, DGPC had invested Nu 6.3 bn, and KHPL secured over Nu 48 bn in debt financing from India’s Power Finance Corporation.
Other projects contributing to the 3,101 MW include the 54 MW Burgangchhu, 32 MW Yungichhu, and 90 MW Jomori, all scheduled for commissioning in 2025 or 2028. The 25 MW Begana and 26 MW Druk Bindu I & II are expected by 2027 and 2028 respectively, and the 54 MW Gamri I & Bamukparongchhu Integrated project is also due in 2028.
In addition, the government is constructing a 500 kW small hydropower project in Lunana Gewog under Gasa to provide reliable electricity to 13 remote villages located within Jigme Dorji Wangchuck National Park. The Detailed Project Report was completed in 2019, and the project has been included in the 13th Five-Year-Plan with funding support from the Government of India under the PTA framework. DGPC has been entrusted with implementation, and construction has begun following updates to the DPR.
