Hydropower Projects Hydropower Projects

Hydropower Projects

Embassy of India
Thimphu

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India-Bhutan Hydropower Cooperation

Cooperation between India and Bhutan in the hydropower sector commenced in 1961. It received impetus in 1974 with the signing of a bilateral agreement for construction of Chukha Hydroelectric Project (HEP). Since then, both governments have successfully constructed and commissioned five major hydropower projects- 336 MW Chukha HEP, 60 MW Kurichhu HEP, 1020 MW Tala HEP, 720 MW Mangdechhu HEP and 1020 MW Punatsangchhu-I HEP, enabling Bhutan increase its electricity generation capacity to around 3,490 MW, of which 3,156 MW has been developed under the five Inter-Governmental projects.

    1. The Mangdechhu HEP (MHEP) was inaugurated by PM during his state visit to Bhutan in 2019. It was awarded with prestigious Brunel Medal in October 2020 by the UK based Institute of Civil Engineers. All six units of Punatsangchhu-II HEP have been commissioned, with the sixth and final unit commissioned in September 2025.

Chukha HEP (336 MW)

Kurichhu HEP (60 MW)

Tala HEP Powerhouse (1020 MW)

Mangdechhu HEP (720 MW)

Punatsangchhu-II HEP (1020 MW)

  1. At present, the 1200 MW Punatsangchhu-I HEP is being implemented under the Inter-Governmental modality.
  1. Apart from the aforementioned Inter-Governmental hydropower projects, a few hydropower and solar projects are being taken up by Indian private sector companies in partnership with Bhutanese entities such as Druk Green Power Corporation (DGPC) and Druk Holdings and Investments (DHI).
  1. In March 2024 during Prime Minister Shri Narendra Modi’s state visit to Bhutan, both sides released a Joint Vision Statement on India-Bhutan Energy Partnership. It was agreed that there are unprecedented opportunities to further strengthening this mutually beneficial bilateral clean energy partnership, including through development of new energy projects and trade in electricity; and to engage in the development of new energy projects in the fields of solar and green hydrogen, including through the participation of Indian entities as strategic partners. This has the potential to benefit both countries by enhancing energy security, strengthening their economies, generating employment, enhancing export earnings, and contributing to further development of industrial and financial capacities.
  1. Keeping the above in view, Ministry of New and Renewable Energy, GoI and EoI Thimphu, in collaboration with MoENR, RGoB, Confederation of Indian Industry (CII) and DGPC, organized an “India-Bhutan Renewable Energy Roundtable” in Thimphu on 28 October 2024. Over sixty experts, including representatives from the two governments, regulatory bodies, financial institutions, business leaders from both public and private sectors, and research institutions, participated in five thematic panels on: Renewable Energy Scenario and Policy in Bhutan and India; Role of Solar Energy in the Energy Mix; Access to Financing for Renewable Energy Projects; Hydropower Sector Development; and Accelerating E-mobility Uptake.
  1. Electricity Trade: In recent years, due to increase in domestic consumption of electricity, Bhutan has been importing power from India during the lean season. For the 2024 lean season, GoI approved Bhutan’s request for import of 1,100 MW of power from November 2024-May 2025. As for electricity exports, a new modality for export of electricity to India through Indian Power Exchanges was initiated in September 2023 when GoI facilitated 64 MW Basochhu HEP to sell electricity in Day Ahead Market (DAM) of the Indian Energy Exchange (IEX). In May 2024, GoI also facilitated the access of Basochhu and Nikachhu HEPs for trading on Day Ahead and Real Time Markets in the Indian Power Exchanges. Recently, a similar facilitation was provided for 18 MW Suchhu HEP.

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October 2025