The enormous role of hydropower in Bhutan

Bhutan uses hydropower to conserve the environment, produce electricity, and achieve economic self-reliance.

The enormous role of hydropower in Bhutan

Bhutan is a tireless advocate against climate change. Pristine forest sprawls across the tiny Himalayan nation, compliant with their constitution that dictates “a minimum of 60% of Bhutan’s total land shall be maintained under forest cover at all times”.

Every year, the country generates 2.2 million tons of carbon dioxide. When carbon dioxide is trapped within the atmosphere, it becomes a greenhouse gas, leading to climate change. 

Fortunately, Bhutan’s large number of trees—thanks to the pristine forest covers—absorbs over three times that amount of carbon dioxide. Thus, the country produces a negative four million tons of carbon dioxide yearly, rendering them carbon negative.

To maintain its carbon negative status, Bhutan has to be mindful of the greenhouse gases it produces, hence the kingdom turned to its major asset — its raging rivers.

Enter: hydropower.

hydropower

Unfortunately, Bhutan’s geography places them landlocked between China and India on mountainous land, which is not great in terms of economic advantage. Fortunately, the mountainous lands mean varying altitudes. Pair that with an annual rainfall that ranges between 500mm in the north and 5,000mm in the south, and Bhutan has themselves the solution to their environmental and economic hitch. 

Now, hydropower is the backbone of the Bhutanese economy. 

Bhutan has the potential to harness approximately 30,000 MW of power annually, of which 23,760 MW is economically feasible. Thus far, sites for the 23,760 MW of hydropower have been identified and assessed to be technically feasible. 

Hydropower 101

Firstly, what is hydropower?

Answer: Hydropower is the usage of the force from flowing water to produce mechanical energy. 

To understand hydropower, one has to understand the water cycle, which consists of three steps:

  • Solar energy heats the water in rivers, lakes, and oceans, causing the water to evaporate as water vapour.
  • The water vapour condenses into clouds and falls as precipitation (rain and snow).
  • Precipitation collects in streams, rivers, oceans, and lakes. Soon the whole process is repeated.

Hydropower is the usage of the force from flowing water to produce mechanical energy.
Source:
EIA

The amount of precipitation (that drains into the rivers and streams) of a particular area determines the available resources for producing hydropower. Factors such as seasonal and long-term changes in precipitation affect hydropower production too.

Since hydropower uses water, hydropower plants are naturally located on or near a body of water. As the water flows along a change in elevation, the velocity of the flow increases; this is referred to as a head. The volume of water flowing through a head dictates the amount of available energy. The higher the head, the faster the water flows, the greater the amount of electricity produced.

After the head, the water flows through a pipe, known as a penstock. The water turns the blades in the turbine to charge the generator and create electricity. 

hydrcoelectric Dam

Source: EIA

Hydropower in Bhutan

Electricity was first introduced to Bhutan in 1966 when a diesel-generating plant was established in Phuentsholing, a border town in the Southwest. Then in 1967, Bhutan built their first hydroelectric plant of 360 kW to supply power to Thimphu, the capital. 

By 1974, mini hydropower plants of 300 kW to 1,250 kW were set up in five districts to provide electricity, primarily for lighting. 

In 1974, Bhutan and India signed an agreement for the construction of the 336 MW Chukha hydro project across the river Wangchu in western Bhutan. The project aimed to meet the power demand of the area. Surplus electricity was exported to India.

More and more hydropower plants were commissioned over the years as Bhutan moved steadily towards its goal to provide electricity for all by the year 2020. Bhutan achieved success by providing 100% electricity access in 2016. 

A list of some of Bhutan’s plants are as follows:

  • Punatsangchhu-1 (1000 MW, 4770 GWh)
  • Amochhu-2 (500 MW, 2210 GWh)
  • Zhamgang (Digala) Project (670 MW, 3207 GWh)
  • Punatsangchhu-2 (990 MW, 4667 GWh)
  • Kholongchhu (Gomkora) (485 MW, 2209 GWh)
  • Kheng (Shingkhar) project (570 MW, 2713 GWh)
  • Mangdechhu (670 MW, 2909 GWh)
  • Khomachhu (326 MW, 1507 GWh)
  • Nikachhu/Tangsebji (210 MW, 1042 GWh)
  • Kurichhu (Rothpashong) (401 MW, 1883 GWh)
  • Bunakha Reservoir scheme (180 MW, 893 GWh)

The socio-economic role of hydropower in Bhutan

Hydropower plays two important roles in the socio-economic development of Bhutan:

  1. To provide safe, reliable, sufficient, and affordable electricity for domestic consumption and industrial use. 
  2. As an industry to earn revenue from the exportation of hydroelectricity, which contributes to the capital necessary to achieve economic self-reliance (80% of Bhutan’s surplus power is channelled over to India)

During the 2000s, 27% of Bhutan’s revenue and 14% of their GDP was owed to the hydropower sector. Nonetheless, since the early 2010s, the taxes and dividends of the country have been primarily from hydropower companies and constitute more than 40% of national revenue.

Thus the hydropower sector has become synonymous with Bhutan’s economy.



Related Posts

Online businesses are becoming more and more popular in Bhutan

Even though the Internet was developed in the 1960s, the tiny Himalayan Kingdom of Bhutan was only introduced to it in...

Jan 20, 2022 12:41

Thimphu Tech Park Expansion Begins

Thimphu TechPark begins work to expand its infrastructure with the ground breaking ceremony (Salang Tendrel) for a new...

Dec 22, 2017 14:51

High Altitude, Higher Ambitions: Bhutan Enters the Wine World

Bhutan has officially stepped onto the global wine stage with the debut of The Himalayan, a record-breaking 7.57-litre...

May 23, 2025 16:38

Most Popular Bars in Thimphu

Discover Thimphu’s vibrant nightlife, where traditional Bhutanese drinks meet modern cocktails in the city’s top bars...

Feb 10, 2025 16:14

Brand Bhutan: Karma Yangchen

Karma Yangchen, a distinguished artisan from Bhutan exemplifies a profound commitment to the art of handwoven textiles.

Dec 14, 2023 10:22

Brand Bhutan: Bhutan Herbal Tea

Bhutan Herbal Tea is the brainchild of two Bhutanese individuals who first crossed paths in New York during a Bhutanese...

Nov 25, 2023 13:56

Latest

News

Gyalsung Skilling Programme Prepares 493 Gyalsups for National Service and Future Careers

Bhutan’s Gyalsung Skilling Programme equips 493 Gyalsups with hands-on training in traditional arts and modern technologies, preparing them...

Jun 12, 2025 15:52

Unlock Bhutan’s Cultural Treasures with the Kingdom’s Debut NFT Drop

Discover Bhutan’s first-ever NFT collection on OpenSea—featuring a tribute to Zhabdrung Ngawang Namgyal. Unlock exclusive access to...

Jun 05, 2025 12:15

Features

Passion and Purpose: A Bhutanese's Guide Perspective on Happiness

Chencho Tshering, a seasoned Druk Asia tour guide with nearly a decade of experience, shares his journey, personal passions, and heartfelt...

May 28, 2025 16:38

Lost & Found: Bhutanese Textiles at Melbourne Design Week 2025

Bhutanese designer Chandrika Tamang brings Lost & Found to Melbourne Design Week 2025, showcasing traditional Bhutanese weaving through a...

May 16, 2025 18:23

Business

High Altitude, Higher Ambitions: Bhutan Enters the Wine World

Bhutan has officially stepped onto the global wine stage with the debut of The Himalayan, a record-breaking 7.57-litre bottle auctioned by...

May 23, 2025 16:38

Most Popular Bars in Thimphu

Discover Thimphu’s vibrant nightlife, where traditional Bhutanese drinks meet modern cocktails in the city’s top bars and lounges. Unwind...

Feb 10, 2025 16:14

Sports

Zimbiri Makes History as First Bhutanese Woman Elected to SAFF Executive Committee

Zimbiri has made history as the first Bhutanese woman elected to the South Asian Football Federation (SAFF) Executive Committee, a landmark...

May 28, 2025 10:49

Bhutan Cricket's New Milestone: The Inaugural Indoor Cricket Academy

The Bhutan Cricket Council Board (BCCB) inaugurated its inaugural indoor cricket academy on 20th December, with the objective of ensuring...

Dec 21, 2023 14:57

Travel

Heli Bhutan Takes Flight: Private Helicopter Service Boosts Connectivity in Remote Bhutan

Heli Bhutan, the first private helicopter service in Bhutan, offers high-altitude flights to remote destinations with a brand-new Airbus...

May 23, 2025 15:59

Bhutan Goes Cashless: Bhutan Launches World’s First National Tourism Crypto Payment System

Bhutan partners with Binance Pay and DK Bank to launch the world’s first national-level crypto tourism payment system. From flights and...

May 07, 2025 14:06

Lifestyle

What's in a Name? Discover Bhutan's Unique Naming Tradition

In Bhutan, names are traditionally given by monks and not tied to family lineage. Visitors can experience a traditional naming ceremony at...

Jun 03, 2025 14:04

Bhutanese Astrology: Ancient Wisdom at Pangri Zampa Monastery

Astrology in Bhutan is not just a cultural curiosity—it’s a living, breathing part of everyday life. At the heart of this tradition lies...

May 26, 2025 14:57

Subscribe to our newsletter

Never miss out on new happenings and news stories!

newsletter

Download Daily Bhutan Mobile App

Connecting with us just got easier!

android app
apple app