1st Utility Scale Solar Power Plant In Bhutan

Asian Development Bank Backs Bhutan’s 17.38 MW Solar PV Project To Help Diversify Electricity Mix

1st Utility Scale Solar Power Plant In Bhutan

The Sephu Solar Power Plant that the ADB is supporting in Bhutan, will increase the resilience of its energy sector to future climate shocks, stated the bank. (Photo Credit: Asian Development Bank)

  • ADB has approved a financing amount of $18.26 million for a solar power plant in Bhutan
  • It will have 17.38 MW installed capacity as the country’s 1st utility scale solar power project
  • The project is aimed at enabling Bhutan to diversify its energy generation that currently is dominated by hydropower

The Asian Development Bank (ADB) will support a 17.38 MW solar power plant touting it as the 1st utility scale solar PV power plant in Bhutan, with $18.26 million financing to help the Asian nation diversify its energy mix that currently is heavily reliant on hydropower.

“This project will be the country’s first major step toward diversifying power generation and increasing the resilience of its energy sector to future climate shocks,” said ADB Energy Specialist for South Asia Christoph Meindl.

ADB’s financing comprising $8.26 million concessional loan and an ADB administered $10 million grant from the Asian Development Fund, will be in addition to $990,000 that the Government of Bhutan is contributing to the project.

Designed to generate 25 GWh of electricity annually, the facility will be located in central-west part of the country in Sephu region of Wangdue Phodrang district that experiences snowfall during winter.

“Increasing temperatures is projected to decrease glaciers and snow-covered areas, which will shift Bhutan’s hydrological system to a more rainfall-dominated pattern,” added Meindl. “This affects hydropower generation due to expected frequent droughts outside of the monsoon season and extreme high flows during the monsoon season.”

Hence the need for Bhutan to diversify into renewable energy sources like solar PV. In August 2022, Bhutan’s Ministry of Economic Affairs invited bids for the 17.38 MW solar power plant (see Bhutan Launches Tender For 17.38 MW Solar).

About The Author

Anu Bhambhani

SENIOR NEWS EDITOR Anu is our solar news whirlwind. At TaiyangNews, she covers everything that is of importance in the world of solar power. In the past 9 years that she has been associated with TaiyangNews, she has covered over thousands of stories, and analysis pieces on markets, technology, financials, and more on a daily basis. She also hosts TaiyangNews Conferences and Webinars. Prior to joining TaiyangNews, Anu reported on sustainability, management, and education for leading print dailies in India. [email protected]

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