Hydropower Projects Hydropower Projects

Hydropower Projects

Embassy of India
Thimphu
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India-Bhutan Hydropower Cooperation

India-Bhutan Hydropower Cooperation commenced 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 336 MW Chukha HEP, 60 MW Kurichhu HEP, 1020 MW Tala HEP and 720 MW Mangdechhu HEP, enabling Bhutan increase its electricity generation capacity to around 2,451 MW, of which 2,136 MW was developed under the four Inter-Governmental projects.

2. The Mangdechhu HEP (MHEP) was inaugurated by PM during his state visit to Bhutan in 2019. The MHEP was awarded with prestigious Brunel Medal in October 2020 by the UK based Institute of Civil Engineers.

Chukha HEP (336 MW)

Kurichhu HEP (60 MW)

Tala HEP Powerhouse (1020 MW)

Mangdechhu HEP (720 MW)

3. At present, two HEPs- 1200 MW Punatsangchhu-I and 1020 MW Punatsangchhu-II are being implemented under the Inter-Governmental modality. On 17 December 2024, the first two units of Punatsangchu-II HEP were commissioned. The remaining four units are expected to be commissioned this year.

4. 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).

5. 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.

6. 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.

7. 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 has approved Bhutan’s request for import of 1100 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.

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February 2025