What is Bhutan's first solar power project?

The first phase of Bhutan’s first utility-scale solar power project at Sephu in Wangdue Phodrang is set for completion by March next year. A utility-scale solar facility generates solar power and feeds it into the grid. The 17.38-megawatt solar farm is expected to generate around 24 million units of energy annually, once operational.

Why does Bhutan use solar power?

To meet its annual power needs, Bhutan uses solar power alongside hydropower in a complimentary manner. This promotes climate adaptation by diversifying the power generation portfolio, a systemic approach that builds resilience against climate change impacts.

Can solar photovoltaic improve Bhutan's hydropower supply?

While hydropower provides a reliable source of growth, other renewable energy technologies, including solar photovoltaic, offer ways to diversify Bhutan’s electricity mix and increase resilience to changing seasonal extreme weather patterns that can adversely affect hydropower supply.

Will EIB finance hydro power plants in Bhutan?

EIB framework loan to finance hydro power plants (expected in the range of 25 - 75 MW) and solar PV plants in Bhutan. The European Investment Bank (EIB), the world’s largest multilateral bank and leading global financier of renewable energy, signed its first-ever investment support for Bhutan today.

How will the new EIB financing help Bhutan?

The new projects, to be implemented by Druk Green Power Corporation, will contribute to climate action, helping Bhutan to strengthen its energy security and increase the use of renewable energy. The new EIB financing will support the installation of an estimated 310 MW of hydropower and solar power generation capacity.

How will Bhutan's government diversify its power mix?

The financing will back the construction of small to mid-size run-of-river hydropower plants and solar photovoltaic generation to help the Bhutanese government diversify the country’s power mix.