Tata Power has joined forces with Druk Green Power Corp. to develop 5,000 MW of clean energy capacity in Bhutan. This includes large-scale hydropower and solar projects aimed at supporting Bhutan’s energy goals and regional integration.
Another 500 MW of solar projects will be developed by Tata Power Renewable Energy Ltd., a subsidiary of Tata Power, it said. This partnership aligns with Bhutan's vision for its energy sector, which aims to increase its overall generation capacity to 25,000 MW by 2040, ensuring energy security and promoting regional energy integration.
There are two major power utility companies in Bhutan: the Druk Green Power Corporation Limited (DGPC), and the Bhutan Power Corporation (BPC). The state-owned Bhutan Power Corporation (BPC) holds the main responsibility for transmitting and distributing electricity (ADB, n.d.).
Of-grid hydropower and solar home lighting systems accounted for a very small percentage of electricity generation in 2014 (Figure 1). Bhutan’s installed power generation capacity in 2017 was 1.6 gigawatts (GW), representing only 6% of its techno-economic feasible hydropower potential.
Currently, Bhutan’s power generation is mostly dependent on run-of-river (RoR) type hydropower plants, which are more susceptible to variation in rainfall patterns and the impacts of climate change.
While hydropower is likely to remain an important component of the energy sector and economy of Bhutan, renewable energy technologies such as solar PV, wind, bioenergy and small hydropower could ofer opportunities to diversify the country’s energy mix and help address rising energy demand.
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