The Asian Development Bank has approved a $160 million loan to finance at least 310 MW of new solar capacity in Bhutan, backing the Himalayan kingdom's push to diversify away from hydropower, PV Tech and pv magazine report.
Key facts
- Financing: $160 million ADB loan for the Solar Farm Expansion Project
- New capacity: at least 310 MW across three utility-scale sites
- 120 MW Wobthang and 40 MW Pedseling solar farms in Bumthang, developed by state-owned Druk Green Power Corporation (DGPC)
- 150 MW Dramthang project in Lhuentse, delivered through a joint venture between DGPC and India's Tata Power Renewable Energy — Bhutan's first private-majority PPP in the energy sector
- Bhutan Power Corporation will build 46 km of transmission lines to connect the projects
- Winter peak demand grew from 487 MW in 2021 to 1,477 MW in 2025, and ADB forecasts a supply gap of more than 1 GW by 2030
- Workforce program: training for more than 250 people, with at least 70% women
Why it matters
Bhutan generates nearly all of its electricity from hydropower, which runs low exactly when heating demand peaks: in the dry winter months. Solar is the fastest way to close that seasonal gap, and the ADB package turns a pilot-scale solar sector into a utility-scale program almost overnight.
The Dramthang joint venture is the bigger signal for the industry. A private-majority PPP with an Indian developer opens Bhutan's power sector to outside capital for the first time, and it extends the India–Bhutan energy relationship beyond hydro exports into solar development.
For suppliers and EPC contractors, three high-altitude sites plus new transmission mean near-term procurement of modules, inverters, mounting systems suited to mountain terrain, and construction services in a market with little existing solar supply chain.
Sources
- PV Tech coverage - July 2026
- pv magazine coverage - July 3, 2026
SolarXList summary based on publicly available industry sources checked on July 14, 2026.