In an ambitious move to enhance its energy capacity, Bhutan is partnering with an Indian company for a large-scale project focused on renewable energy. This strategic agreement announces the construction of modern infrastructures aimed at a total production of 1,270 megawatts. Meanwhile, the European Investment Bank (EIB) is injecting 150 million euros to promote the development of additional hydroelectric plants. This initiative aligns with Bhutan’s sustainable development goals, aiming for at least 20 megawatts of clean energy generation.
Recently, Bhutan signed a significant agreement with an Indian company for the construction of renewable energy infrastructures. This agreement, marking a crucial step, aims to produce a total capacity of 1,270 megawatts. With support from the EIB, which is contributing a loan of 150 million euros, Bhutan plans to increase its electricity production through new hydroelectric plants, even during the dry season. This development is part of the 61 projects approved under their 13th five-year plan, supported by India with significant financing of 100 billion Nu. The energy partnership between Bhutan and India is an essential bilateral cooperation highlighted by this innovative agreement.
An ambitious partnership for energy development in Bhutan
Bhutan and Reliance have signed an ambitious agreement for the construction of infrastructures for renewable energy production. This project aims to install a total capacity of 1,270 megawatts, thus enhancing Bhutan’s energy potential, a country already recognized for its efforts in environmental sustainability. With this agreement, Bhutan appears determined to deepen its energy cooperation with India to pursue its sustainable development goals.
Economic and ecological impact of the agreement
This strategic agreement is not only about boosting renewable energy production. It also promises to have a significant impact on Bhutan’s economy. With the support of the European Investment Bank, which has provided a loan of 150 million euros, Bhutan secures the capacity to increase production during the dry seasons. This will facilitate the sale of electricity to its neighbors, especially India, thanks to well-supported projects backed by robust investments. This collaboration strengthens a historic partnership marked by cooperation in hydroelectric energy.
The geopolitical stakes and the race for renewable energy
Bhutan has always sought to leverage its abundant natural resources for its energy development. With this agreement, the country aims to increasingly integrate renewable energies into its national energy mix. In collaboration with actors like Reliance and other partnerships with India, Bhutan aspires to become a major player in the energy sector in South Asia. This approach reflects its aspirations to participate in the global move towards greater integration of renewable energies to reduce dependence on fossil fuels.
