1st Utility Scale Solar Power Plant In Bhutan

• 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 1^st 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 1^st 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).