National Energy Policy 2025
To address these challenges, the NEP 2025 sets a bold new direction for Bhutan''s energy sector, focusing on diversification, modernization and sustainability. The policy aims to strengthen
According to the National Energy Policy released in June 2025, Bhutan aims to expand its total installed capacity to 25 GW by 2040 — 20 GW from hydropower and 5 GW from solar and wind. This strategy focuses on balancing export-oriented hydro projects with localised renewable generation to ensure year-round energy security.
Reliance Power, under its May 2025 joint venture with Druk Holding and Investments' subsidiary Green Digital, is taking the lead on Bhutan's largest solar investment to date — a 500 MW solar farm to be built in phases across western and central Bhutan.
Titled "Empowering Energy Security & Sustainable Growth," the policy consolidates and supersedes several prior frameworks, including the Bhutan Sustainable Hydropower Development Policy 2021, Alternative Renewable Energy Policy 2013, Domestic Electricity Tariff Policy 2016, and National Energy Efficiency & Conservation Policy 2019.
Meanwhile, Adani's and Tata's hydro projects will fortify Bhutan's export revenues in the 2030s, supporting the kingdom's broader goal of becoming a carbon-negative, renewable energy hub in the Himalayas. These new power projects signal a major transformation for Bhutan — economically, environmentally, and geopolitically.
To address these challenges, the NEP 2025 sets a bold new direction for Bhutan''s energy sector, focusing on diversification, modernization and sustainability. The policy aims to strengthen
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Explore Bhutan''s transformative National Energy Policy 2025 (approved June 2025): how it consolidates previous energy frameworks into one cohesive NEP, opens hydropower and solar to
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