Technical FAQs 4

Who owns the energy sector in Bhutan?

Bhutan’s energy sector operations have separate commercial management and ownership from the government. The state-owned Druk Green Power Corporation (DGPC) owns and operates power plants while the Bhutan Power Corporation, also state-owned, performs transmission and distribution.

How can Bhutan improve its energy security?

To improve Bhutan’s energy security while strengthening resilience to water variation and climate change, it is required to diversify power generation sources and types, including (i) solar farms, rooftop and floating solar, and agrivoltaics; and (ii) storage and pumped storage hydropower and small hydropower. 4 H. Nagai et al. 2017.

What is the main energy source in Bhutan?

On-grid hydropower is the country's main energy source. Bhutan operates four major hydroelectric facilities, several small and mini hydroelectric generators, and has a handful of further sites in development. Many of the small and mini hydropower plants in Bhutan serve remote villages that remain disconnected from the power grid.

Does Bhutan have a higher electricity tariff than its cost of supply?

While Bhutan industrial consumers pay a higher electricity tariff than their cost of supply, the rate of Nu 2.66/kilowatt-hour (kWh) (equivalent to ¢3.2/kWh) remains attractive to power intensive industries.

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