Despite the country’s total installed capacity of 2,453 MW, the generation output experiences reduction to approximately 415 MW during the dry season (December – March) due to low river inflows as all the existing plants in Bhutan are run-of-the-river schemes with little or no storage capacity. Amidst strong economic growth, especially in infrastructure and manufacturing sectors, a substantial rise in the power demand is expected over the next five to ten years in Bhutan. The peak demand is expected to grow nearly three times from 629 MW in 2022 to 1,662 MW in 2026, whereas the firm capacity would reach only 622 MW by 2026 with the commissioning of hydropower projects under construction, leading to demand-supply deficits continuing in the lean months.
To address above challenges and to reduce the country’s dependence on imported power, there is a need to add to the domestic generation capacity while diversifying the source of power generation. The development of solar energy in Bhutan offers a compelling rationale to attain these objectives. By harnessing the available solar resources, Bhutan can diversify its energy mix, enhance its energy self-sufficiency, and reduce dependence on power imports from India during the lean season, preserving INR reserves. Solar being a mature technology globally, with shorter commissioning timelines, implementing solar projects can provide a reliable and sustainable source of electricity, especially during the months from December to April.
With its clear blue sky during the winter months, when the river inflow plummets thereby reducing the power generation from its hydropower resource, Bhutan stands to leverage on its solar resource to complement the hydropower. Bhutan is in the early stages of solar development with a modest contribution of solar energy in the country’s generation mix compared to hydropower. Nevertheless, the country has already started looking into development opportunities of solar PV technologies, particularly the roof-top solar (RTS) and utility-scale solar through solar pilot projects. Considering the nation’s persistent
commitment to solar development, prioritizing rooftop solar and utility-scale solar projects can enhance and emphasize the foundation for widespread solar adoption in the country.