The Bhutanese Leading the way.
After years of anticipation and uncertainty, the Sunkosh hydropower project is back in the spotlight, with renewed momentum and strategic alignment under the country’s long-term infrastructure vision.
With an estimated installed capacity of 4,060 megawatts (MW) and a projected cost of over Nu 323 billion (USD 3.8 billion), the project is being repositioned as a cornerstone of Bhutan’s future in regional renewable energy.
During the 18th Meet-the-Press session held on 1st August 2025, Director of the Department of Geology and Mines, Phuntsho Namgyal, shared that a comprehensive reassessment of the project is currently underway.
This includes updated hydrological studies, revised cost estimates, socio-environmental impact assessments (SEIA), and financial feasibility reviews to ensure the project’s viability in today’s dynamic economic and climate context.
Originally conceptualized by India’s Central Water Commission (CWC), the Sunkosh project’s Detailed Project Report (DPR) was completed in 1995 and later updated by THDC India Ltd. in 2012. The DPR itself needs to be updated. The turning point came with Bhutan’s evolving infrastructure strategy, the government’s 10X National Economic Vision, and the establishment of the Gelephu Mindfulness City (GMC) which is expected to play a key role in mobilizing investment and logistical support for mega-projects like Sunkosh.
As part of the renewed push, the Ministry of Energy and Natural Resources (MoENR) is currently overseeing the following preparatory activities.
Updating hydrological assessments using data up to 2025 to reflect changing river flow patterns and seasonal variations. Revising the overall cost estimate of the project to match current market rates and inflation.Finalizing the Socio-Environmental Impact Assessment (SEIA) to address ecological sensitivities and community concerns in the Dagana and Tsirang regions.
Re-evaluating financial and economic feasibility to better align the project with present-day regional power demand and export pricing trends.
The project’s groundbreaking ceremony was held in 2023 at Karmaling Gewog in Dagana.
The Sunkosh project is central to Bhutan’s Renewable Energy Development Roadmap 2040, which aims to generate an additional 20,000 MW of renewable energy. Once operational, Sankosh is expected to vastly enhance Bhutan’s energy security, export capacity, and economic resilience while positioning the country as a key player in South Asia’s green energy market.
The reservoir-based model also gives Sankosh a strategic advantage over run-of-the-river projects, allowing energy generation to be managed in response to demand, especially during peak export seasons.
Although the project’s implementation timeline is yet to be finalized, the ongoing assessments mark a crucial step toward execution. With investment support actively being explored, particularly through platforms like the GMC, the hydro project is inching closer to becoming a reality.
