Bhutan’s Department of Energy has launched a market-sounding EOI to identify private developers for solar PV projects under a BOO model
Initial phase targets 100 MW, with IPPs building, owning, and operating projects over 25 years via PPAs
This exercise will enable future financing under the Green Finance Facility and assess market demand for solar investment
Bhutan has opened an expression of interest (EOI) for developers and investors to develop distributed solar PV projects under a build-own-operate (BOO) framework. These projects will be developed under a planned Green Financing Facility (GEF) aimed at attracting private investment in solar energy.
The program plans to start by developing 100 MW of solar projects, to be installed across commercial, education, and other sectors by local Bhutanese Renewable Energy Service Providers and potential investors.
The rolling EOI is open to all interested developers for rooftop and ground-mounted solar projects. Companies are expected to identify suitable sites, including government land if needed, and carry out their own technical and financial checks before submitting their EOI.
Selected independent power producers (IPP) will build, own, and operate the projects for a concession period of 25 years with financing from the GEF, and enter a power purchase agreement (PPA).
Bhutan’s Department of Energy (DoE) specified that this EOI is not a funding application but a market sounding exercise to assess private-sector participation and gather insights to help shape financing mechanisms under the proposed GFF.
It will help assess and demonstrate strong market demand and investment potential for solar PV in the country, while identifying a pipeline of investment-ready projects. The exercise will also enable it to ascertain whether the financing mechanism under the GEF is fit for purpose.
“The facility aims to catalyze and enable private-sector investment in generation of solar PV across Bhutan to achieve the national targets of 1 GW of solar capacity by 2030 and 5 GW by 2040,” stated the DoE.
Submitting an EOI will help attract concessional funding to Bhutan, making future financing more affordable and less risky for developers.
The DoE is designing the GEF in partnership with the Bhutan Trust Fund for Environmental Conservation, the United Nations Development Programme (UNDP), and the United Nations Capital Development Fund, with support from the Mitigation Action Facility (MAF).
The rolling EOI was launched on March 27, 2026, with a first deadline of April 30, 2026. Future EOI calls, if required, will be notified at a later date.
A carbon-negative country, Bhutan currently relies majorly on hydropower for electricity supply. Seasonal fluctuations (winter and non-rainy season) prompt it to import electricity from its neighbor, India.
With rising electricity demand, it seeks to diversify power generation sources, including investment in solar PV, for which it is also partnering with Indian companies (see Bhutan’s DGPC Partners With India’s CRPL For Renewables).
