The Bhutanese Leading the way.
A multi-agency task force formed by the Ministry of Energy and Natural Resources (MoENR) has completed a study on how high-voltage transmission lines affect private land and farmland across Bhutan. The report, finalized in October 2025, was prepared after reviewing documents, checking cadastral and geospatial data and carrying out field visits in selected areas.
According to the findings, Bhutan Power Corporation (BPC) operates 1,836.97 km of transmission lines with 5,050 towers, and 1,049 of these towers stand on private land. Compensation has been paid for 281 towers so far, while payment for another 768 towers is still ongoing.
The study found that 9,382 private land plots are affected by the Right-of-Way of transmission lines, covering a total of 2,201 acres. Most of the affected plots, about 80 percent are buildable land such as Kamzhing, residential land, orchards and urban plots.
Chhukha has the highest number of affected plots, followed by Dagana and Samtse. The report also shows that 273 institutional plots belonging to government institutions, corporations, monastic bodies and community land are affected, covering 186.66 acres.
During field verification of 47 tower sites in six gewogs, the task force found differences of 1 to 7 meters between BPC’s tower coordinates and the actual ground position. They also found situations where transmission lines pass close to houses. Some landowners reported reduced land productivity and difficulties in constructing buildings because of the restrictions under the Right-of-Way. BPC has applied required safety clearances in such areas, although further technical review may be needed for certain cases.
The report examined two possible ways of compensating landowners. One option is a single cash payment based on 100 percent of the Land Compensation Rate, which would cost Nu 2.67 billion and may increase electricity tariffs by around 6 percent. The second option is an annual lease payment through easement agreements, where landowners receive a percentage of the land value every year for 30 years. This approach would cost Nu 801.55 million and may increase electricity tariffs by only around 0.3 percent. The report states that full cash compensation is the least preferred option because it can lead to landlessness, loss of income and farmland being left unused.
The task force also concluded that relocating the transmission lines is not possible. Moving the lines would require new routes, more land, higher costs and could interrupt power supply while creating new Right-of-Way problems. Instead, the report recommends a mixed approach. Affected landowners can apply to build structures within the Right-of-Way if safety rules are met, or they can lease their land to BPC while keeping ownership and receiving annual payments. Cash compensation or land substitution will be used only when necessary.
Other options in the report include adjusting plot boundaries, exchanging land of equal value, using land pooling under Local Area Plans and avoiding compensation for land bought after the transmission infrastructure was already in place.
This mixed compensation system aims to address long-standing land issues caused by transmission lines while ensuring fair treatment for landowners and supporting the long-term and safe operation of Bhutan’s transmission network.
