Department of Energy, Ministry of Energy & Natural Resources

Training on Financial Modeling & Project Financing for Solar Energy Projects at New Delhi, India

A technical delegation from Bhutan’s energy sector - comprising 12 officials from the Department of Energy (DoE), Druk Green Power Corporation (DGPC), Desuung Skilling Programme – Solar Initiative (DSP-SI), Electricity Regulatory Authority (ERA), Druk Holding and Investments (DHI), Ministry of Finance (M*F), and public sector entities - is participating in a two-week training on Financial Modeling & Project Financing for Solar Energy Projects in New Delhi, India, from March 2-13, 2026.
Funded by the Government of India through Project Tied Assistance (GoI-PTA) and facilitated by FirstGreen Consultancy, this program equips participants with practical expertise in solar project financing structures, Power Purchase Agreements (PPAs), financing terms, and risk allocation. Hands-on sessions focus on building and evaluating financial models to inform policy and regulatory decisions with robust evidence.
The insights gained will drive sustainable growth in Bhutan’s renewable energy sector, fostering a resilient, technologically advanced clean energy future and strengthening regional energy interconnections.

Shangsa, one of the remotest communities in Lunana Gewog situated at an elevation of 3,600masl, has taken a significant step towards sustainable development. On August 20, 2024, Shangsa became the first village among 13 unelectrified villages in Lunana to receive a clean and reliable source of energy powered through a newly installed 33kWp solar photovoltaic mini-grid system.

The 33kWp solar mini-grid plant is implemented by the Department of Energy, Ministry of Energy and Natural Resources, under the funding support of Bhutan for Life (BFL) and RGoB at a project estimated cost of Nu. 21.1 Million. The scope of works for supply, installation, transportation and testing & commissioning was executed by M/s JB Solar Solutions (Contractor) on 13.11.2023 and officially handed over to the Department on 20.8.2024. The solar mini-grid plant is estimated to generate approximately 40.70MWh of energy per annum and benefit 11 households in Shangsa by providing clean, reliable and renewable energy.

Throughout the project implementation, the entire community was actively involved in construction, installation, testing and commissioning of the solar mini-grid plant and the Contractor has imparted training to the community for operation and maintenance of the plant. This approach aimed to effectively transfer both theoretical knowledge and practical skills while fostering a sense of ownership over the plant. To ensure the plant's sustainability, it has now been handed over to the community, with minimal monthly energy bills collected to support its seamless operation and maintenance.

Prior to the Project intervention, the community had to depend on firewood and LPG for cooking and heating while lighting was provided with a standalone (ranging from 50 to 100 watts) solar home lighting system. However, these hurdles are now eliminated with the commissioning of the solar mini-grid. The plant will immensely benefit the community through the replacement of firewood for meeting energy demands. Furthermore, people can reap the benefits of improved health, hygiene and more family time as a result of the project.

The successful implementation of this solar mini-grid marks the beginning of a broader effort, with more villages in Lunana planned for reliable electrification in the coming years. The Department is actively seeking funding support from various donors to complete the last-mile connectivity in these off-grid villages. With continued support and investment, the remaining unelectrified communities will soon experience similar benefits, paving the way for sustainable development across the region

USD 26bn needed to achieve 20,000 MW energy capacity by 2040 - BBSCL Bhutan needs USD 26bn to achieve 20,000 megawatts of energy capacity by 2040. This includes 15,000 megawatts in hydropower energy and 5,000 megawatts in renewable energy like solar and wind. Department of Energy’s Director, Karma Penjor Dorji, shared this during the meet the press session on Frida...

The Department cordially invites individuals with an interest in clean cooking initiatives to participate in the upcoming online Regional Knowledge Seminar on November 20, 2023, and the National Capacity Building Workshop on November 21, 2023. These events, organized by UNESCAP in Nepal, serve as valuable learning platforms, offering insights into clean cooking initiatives and opportunities related to carbon financing under Article 6.2.

To maximize your participation, we strongly encourage everyone to register using the provided links below.

1. https://www.unescap.org/events/2023/regional-knowledge-seminar-harnessing-electric-cooking-solve-clean-cooking-challenge

2. https://www.unescap.org/events/2023/national-capacity-building-workshop-financing-clean-cooking-bhutan-and-nepal

National Capacity Building Workshop Financing Clean Cooking in Bhutan and Nepal ESCAP serves as the United Nations’ regional hub promoting cooperation among countries to achieve inclusive and sustainable development. It is the largest regional intergovernmental platform with 53 Member States and 9 associate members.

Multi-Stakeholder and Scoping Workshop on Green Energy Solutions in Bhutan:

On August 2 2023, the Department of Energy in collaboration with International Centre for Integrated Mountain Development (ICIMOD) organized a Multi-Stakeholder Engagement and Scoping Workshop with funding support from the Austrian Development Agency (ADA) at Terma Linca, Thimphu.

The objective of the workshop was to bring together various stakeholders within the Government, including CSOs, NGOs, and private entrepreneurs, to identify priority actions for promoting sustainable energy practices within the agriculture and tourism sectors. The focus was on exploring innovative renewable energy and energy efficiency solutions from an environmental and livelihood enhancement perspective.

Over 35 participants from 21 diverse government and non-government agencies including private sector participated in the workshop. Throughout the workshop, participants actively engaged in group discussions, delving into crucial aspects such as key enablers, barriers, ongoing efforts, and drivers of change in the region. The goal was to uncover necessary interventions that can facilitate the scaling up of renewable energy and energy efficiency solutions for both business enterprises and communities in Bhutan.

A significant emphasis was placed on identifying priority areas of high relevance, recognizing drivers for change, and understanding the gaps and challenges hindering the transition towards greener, low-carbon, and efficient energy solutions in the Hindu Kush Himalayan region, particularly in Bhutan.
The workshop also launched the working paper on Alternative Renewable Energy in Bhutan prepared by ICIMOD. This report presents valuable insights into harnessing the power of renewable resources for sustainable development and some key policy recommendations.

Tender Alert: Design, Supply, Installation, Testing and Commissioning of Grid Connected Solar Photovoltaic Systems

The Department of Energy (DoE) would like to inform that the Royal Government of Bhutan has received a Grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR 9211) through Asian Development Bank (ADB) towards the implementation of Alternative Renewable Energy Pilot Project. The Project is jointly implemented by the Department of Energy and Bhutan Power Corporation limited.

Part of the grant is being used for pilot testing the installation of 3kW small-scale solar photovoltaic (PV) systems at 305 marginalized rural households. These PV systems will be integrated with the national grid to enable the rural households to produce energy for their own consumption and also create income generation opportunities through sale of excess power to the grid.

In this regard, DoE encourages all the eligible bidders to submit sealed bids for the Design, Supply, Installation, Testing and Commissioning of Grid Connected Solar Photovoltaic Systems to Bhutan Power Corporation.

The tender document can be downloaded from https://myfile.bpc.bt/share.cgi?ssid=e61c68ab353e4ad18099a2ce1920cb4a. Bids must be submitted to the General Manager, Construction Division, Construction & Procurement Department, Bhutan power Corporation on or before 1300 Hrs (BST) on 8 June 2023. Visit BPC website for more details.

The Department of Energy family would like to wish everyone a happy traditional day of offering. Wishing you all good health, happiness and prosperity. Chunyipaii losar Tashidelek la.

Please share with your friend and family this message on Energy Efficiency and Conservation🙏🏻.