In a significant step toward energy self-sufficiency, Bhutan today commissioned the first phase of its largest solar power project, the Sephu Solar Project, in Wangdue Phodrang. The facility, spread over 44 acres in Yongtru village, Sephu Gewog, boasts a peak power generation capacity of over 17 megawatts (MW).
The project, the country’s first utility-scale solar plant, is expected to help reduce Bhutan’s dependence on electricity imports from India, particularly during the lean winter months when hydropower output drops due to reduced river flows. According to project officials, the newly commissioned phase could cut energy imports by 25 million units annually.
Bhutan imported nearly 1,000 million units of electricity last winter, amounting to Nu 3.4 billion in expenditures. The solar initiative is expected to ease such financial burdens while also bolstering energy security.
The second phase of the Sephu project, which covers an additional 19 acres of land, is scheduled for completion in September. This phase will add five megawatts of peak generation capacity, further strengthening the country’s renewable energy portfolio.
Long-Term Renewable Energy Goals
The Sephu Solar Project is a crucial component of Bhutan’s ambitious plan to produce 5,000 MW of electricity from solar and wind by 2040.
Energy and Natural Resources Minister Gem Tshering highlighted other major renewable energy ventures currently in the pipeline:
- Jamji Solar Project near Chhuzom (120 MW), with the contract awarded to Rigsar Construction Company.
- Apa Ama Pang Project in Dagana (over 100 MW).
- Tang Project in Bumthang (over 100 MW).
“These projects are essential if we are to meet the 5,000 MW renewable energy target,” the minister said.
ADB-Funded Green Transition
The Asian Development Bank (ADB) is financing the Sephu Solar Project at a total cost of Nu 1.5 billion. Of this, Nu 685 million is being provided as a loan, while Nu 830 million is being extended as a grant.
The project is expected to significantly reduce Bhutan’s carbon footprint while ensuring sustainable energy supply for domestic consumption.
Once fully operational, the Sephu Solar Project will mark a new chapter in Bhutan’s journey toward energy independence and renewable energy leadership in the region.
