Nu 1.58 billion budget allocated for the energy sector

Bhutan is charging toward its ambitious 25,000 MW target by 2040.

The FY 2026-27 budget allocates Nu 1.58 billion (bn) to the energy sector, aiming to nearly double its GDP contribution.

Key investments include the Nu 25.0 million (mn) for a 1 MW turbulent micro hydropower pilot, Nu 568.2 mn Lunana hydro project, Nu 34.2 mn for solar PV systems in Wachey, Esuna, Lunana, and Shingphel, Nu 50.4 mn for solar PV installations in three central schools, and a pioneering Nu 66.8 mn Green Hydrogen Station at Gidakom.

These steps ensure a resilient, diversified energy mix for the country as the sector looks to diversify the energy mix, strengthen long-term energy security, and raise the sector’s contribution to GDP from Nu 30.5 bn to Nu 55.9 bn.

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