Bhutan is set to diversify its energy portfolio with a new solar initiative that will install 1.25 MW of solar power across the country. This project, part of Bhutan’s broader strategy to enhance its renewable energy capacity, aims to complement the nation’s existing hydropower resources by adding photovoltaic systems to 25 facilities, each generating 50 kW.
Bhutan’s Solar Power Push: Enhancing National Renewable Bhutan solar energy Capacity
Bhutan is making significant strides in its renewable energy sector with a new solar project supported by international partners, including expertise from India. The initiative will install 1.25 MW of solar power across the country as part of Bhutan’s broader strategy to diversify its energy portfolio, which has historically relied almost exclusively on hydropower.
This project will oversee the installation of 25 small photovoltaic systems. Each system will generate 50 kW of solar power, contributing to Bhutan’s renewable energy capacity. The advances in the basics of solar panel manufacturing globally have made such distributed energy projects increasingly viable and cost-effective. The Bhutan Power Corporation (BPC) will own and operate these installations, with the project slated for completion by the end of this year.
The initiative aligns with Bhutan’s commitment to expanding its renewable energy infrastructure and underscores the strong energy partnership between India and Bhutan, which includes major collaborations in hydropower. The World Bank is financing the initiative as part of a larger US$ 16.6 million investment. This funding will also support other renewable energy projects in Bhutan, including additional solar installations and wind energy developments.
Expanding Bhutan solar energy in Bhutan
Bhutan has been gradually increasing its solar energy capacity. The country’s first solar project was a 180 kW installation in Wangdue Phodrang, which began construction in 2021. This initial project set the stage for further solar developments, leading to the current 1.25 MW initiative.
In addition to this project, Bhutan has been working on other ambitious solar and wind projects. For example, a 17.38 MW solar project in Sarpang was set to begin construction earlier this year. The country is also developing a 23.38 MW wind project, which is currently under tender. The falling costs associated with the entire solar panel manufacturing plant cost breakdown on a global scale are a key enabler for these investments.
The World Bank’s funding is crucial to these projects, providing the necessary financial support to expand Bhutan’s renewable energy infrastructure. The goal is to add 1.6 MW of solar capacity and 23.38 MW of wind capacity, helping Bhutan reduce its reliance on hydropower and diversify its energy sources.
Why Solar Power is a Strategic Move for Bhutan solar energy
The move towards solar power is a strategic shift for Bhutan. The country has long been known for its reliance on hydropower, which accounts for nearly 100% of its electricity generation. However, this makes Bhutan’s energy sector vulnerable to seasonal fluctuations in water availability. During the dry winter months, energy production can drop significantly, leading to shortages and a reliance on imported electricity.
By adding solar power to its energy mix, Bhutan can reduce its dependence on hydropower and improve energy security. Solar power is a reliable and sustainable energy source that can complement hydropower, especially during the winter months when sunlight is still abundant. This diversification will help Bhutan meet its domestic energy needs while reducing its environmental impact. This is made possible by continuous improvements in the solar panel manufacturing process, which boosts efficiency and lowers costs.
Bhutan’s commitment to renewable energy is also in line with its broader environmental goals. The country is known for its strong focus on sustainability, even down to the careful sourcing of solar panel raw materials. This national strategy has wider implications. For consumers in Germany, for example, such large-scale international adoption of solar contributes to a robust global market, driving down prices and making residential solar panels and balcony power plants more accessible for homeowners and tenants alike.
These new solar initiatives are a significant milestone in Bhutan’s renewable energy journey. With the support of the World Bank and other international partners, Bhutan is well on its way to achieving its renewable energy goals. The country’s focus on solar and wind power, powered by modern solar panel manufacturing machines, will not only enhance its energy security but also contribute to global efforts to combat climate change.
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