Bhutan’s push to expand its renewable energy portfolio beyond hydropower has received fresh impetus, with Druk Green Power Corporation Limited (DGPC) entering into a partnership with India’s Hira Power & Steel Limited (HPSL) to explore the development of solar energy projects in the Himalayan nation.
The two companies have signed a Memorandum of Understanding (MoU) that will provide a framework for assessing opportunities for jointly developing solar power capacity in Bhutan. The agreement follows an Expression of Interest submitted by HPSL for a proposed 500 MW solar photovoltaic (PV) project.
Under the partnership, DGPC and HPSL will examine prospective locations for solar installations and evaluate the technical and commercial feasibility of potential projects. The companies will also explore suitable models of collaboration as they assess opportunities for taking the proposed development forward.
The initiative comes as Bhutan seeks to broaden its clean energy base by harnessing renewable sources in addition to its extensive hydropower resources. Solar energy is increasingly being viewed as an important component of this diversification, offering the country an opportunity to supplement hydropower generation while adding new renewable capacity.
For DGPC, Bhutan’s principal power generation company, the agreement forms part of its wider effort to diversify the country’s energy portfolio and encourage investment in emerging clean energy opportunities. A project of the proposed scale could represent a significant addition to Bhutan’s developing solar power sector.
The MoU also adds another dimension to the longstanding energy partnership between Bhutan and India. While cross-border cooperation has traditionally centred on hydropower, the proposed collaboration signals growing scope for the two countries to work together across a wider range of renewable technologies.
The outcome of the feasibility and site assessments will determine the way forward for the proposed solar developments.
