# Bhutan turns to solar as hydropower falters

> The carbon-negative nation is diversifying energy sources to handle winter shortfalls and climate threats to its glacier-fed rivers.
- Title: Bhutan turns to solar as hydropower falters · Malay Mail
- Summary: The carbon-negative nation is diversifying energy sources to handle winter shortfalls and climate threats to its glacier-fed rivers. Bhutan is pivoting from…
- Keywords: bhutan, hydropower, solar energy, renewable energy, climate change, glaciers, electricity demand, energy diversification, thimphu, druk green power corporation, dechencholing solar farm, sephu solar project
- Source: Malay Mail — https://malaymail.com/news/life/2026/09/17/in-hydropowered-bhutan-solar-starts-to-rise-amid-winter-shortfalls-and-climate-pressures/235424
- Published: 2026-09-17T07:00:00+00:00
- Read time: 2 min
- Topics: bhutan, hydropower, solar energy, renewable energy, climate change, glaciers, electricity demand, energy diversification, thimphu, druk green power corporation, dechencholing solar farm, sephu solar project
## Bhutan's hydropower problem
Bhutan has long been carbon negative thanks to hydroelectric power, but winter demand now reaches 1,500 megawatts while hydropower capacity drops 80 percent, forcing imports from India.
## Climate change threatens glaciers
Climate change is melting the glaciers that feed Bhutan's rivers, threatening the long-term viability of hydropower and adding urgency to energy diversification plans.
## Solar projects are booming
Bhutan is rapidly developing solar farms, including the Dechencholing solar farm with 4.45 megawatts capacity and the Sephu project with over 22 megawatts, marking a new energy direction.

> Solar projects are booming
## Ambitious 2040 energy target
Bhutan aims to generate 25,000 megawatts by 2040, with solar accounting for 20 percent of that capacity, up from current hydropower-dominated generation of around 3,700 megawatts.
## Hydropower exports matter to economy
Hydropower exports account for up to 15 percent of Bhutan's GDP, making energy diversification economically complex as the country balances revenue needs with climate resilience.
## Financing challenges for hydro
A 2008 goal to generate 10,000 megawatts from hydropower by 2020 failed partly due to financing obstacles. Building hydropower costs about 1.5 million dollars per megawatt, making it difficult for a small economy.
## Mountainous terrain limits solar
Bhutan's steep mountains, high altitudes, and landslide-prone roads make finding space for ground-mounted solar panels extremely challenging, requiring creative installation approaches.
## Training solar engineers
Bhutan is building solar expertise through the De-suung royal skilling initiative, training around 450 volunteers to develop in-house capacity. Norion Renewable Energy now employs several dozen of these trained engineers.
## Rooftop solar on government buildings
Rooftop solar is now common on government buildings and businesses in Thimphu, with Norion aiming to install 30 megawatts by 2027, but individual consumer adoption remains limited.
## High costs block home adoption
Installing rooftop solar costs around 600,000 ngultrums (25,480 ringgit), far beyond reach for most Bhutanese. Cheap electricity and high installation costs make the economics unattractive for homeowners.

> Many people calculate that if you put that money in the bank, the interest would pay your electricity bills
## Bitcoin mining drives demand
Bhutan is betting on bitcoin mining to boost revenue, with a planned special economic zone called Gelephu Mindfulness City expected to host energy-hungry data centres, adding to electricity demand.
## Foreign investment liberalised
To meet energy targets, Bhutan has liberalised foreign investment rules and increased solar targets in its energy mix, recognising that domestic resources alone cannot fund the transition.
## Key takeaway

Bhutan is pivoting from hydropower dominance to solar energy because winter demand now exceeds hydropower capacity by 80 percent, forcing costly electricity imports from India.