Bhutan achieved an impressive clean electricity milestone in 2023: about 93% of its electricity consumption came from low-carbon hydropower. Net imports supplied the remaining 7%; the data do not identify whether that imported electricity came from low-carbon or fossil sources. Bhutan’s next challenge is to extend electrification to transport, heating and industry, which will require substantially more clean electricity.

Is Electricity Growing in Bhutan?

Electricity consumption in Bhutan is growing, although domestic low-carbon generation has not yet regained its previous peak. In 2023, consumption reached about 15,250 kWh per person, exceeding the previous record set in 2021 by 224 kWh per person, or roughly 1.5%. Low-carbon electricity generation stood at about 14,200 kWh per person, around 574 kWh below its 2020 record—a shortfall of nearly 4%. The new consumption record is encouraging, but restoring and surpassing the clean generation record should be a priority.

Suggestions

Bhutan can increase low-carbon electricity generation by expanding hydropower alongside a stronger push for solar electricity. Rooftop solar and larger solar installations could diversify its clean electricity supply and complement hydropower, particularly during periods of lower river flows. Grid upgrades, storage and stronger regional electricity connections could help deliver this additional generation where it is needed. Bhutan should also consider the potential role of nuclear electricity through long-term feasibility studies and regional cooperation, alongside near-term solar development.

History

Bhutan’s low-carbon electricity history is a story of substantial hydropower expansion interrupted by several setbacks. Generation rose by 0.2 TWh in 1996, followed by gains of 0.3 TWh in both 2002 and 2003. After a small decline in 2004, growth resumed, with especially large increases of 1.8 TWh in 2006 and 2 TWh in 2007. The early and middle 2010s were more uneven: gains in 2010, 2013 and 2015 were interspersed with declines. Further reductions in 2017 and 2018 were disappointing, but a strong rebound added 1.8 TWh in 2019 and 2.7 TWh in 2020. Generation then fell by 0.5 TWh in 2021 before increasing by 0.4 TWh in 2023, underscoring the importance of sustained clean electricity expansion.

Electricity Imports and Exports

Balance of Trade