Bhutan achieved an impressive clean-electricity share in 2023: about 93% of its electricity consumption came from low-carbon sources, entirely hydropower. Net imports supplied the remaining 7%; the data do not identify whether that imported electricity came from low-carbon or fossil sources. The next challenge is to extend electrification to transport, heating and industry, replacing fossil fuel use and reducing climate-changing emissions and air pollution. This will require much more electricity, not just maintaining an already high clean-electricity share.

Is Electricity Growing in Bhutan?

Electricity consumption per person is growing, but clean generation has not yet regained its peak. In 2023, consumption reached about 15,250 kWh per person, exceeding the previous record of roughly 15,020 kWh in 2021 by 224 kWh, or about 1.5%. Low-carbon electricity generation, however, stood at about 14,190 kWh per person—574 kWh, or almost 4%, below its 2020 record of roughly 14,770 kWh. The new consumption record is encouraging, but the shortfall in clean generation underscores the need for further expansion to support electrification and future demand, including from AI.

Suggestions

Bhutan can increase low-carbon electricity generation by expanding its strong hydropower foundation while adding substantial solar capacity. Solar installations on rooftops and suitable land could diversify clean electricity production and complement hydropower, supported by stronger grids and electricity storage. Bhutan should also consider whether nuclear electricity could contribute to its long-term clean-electricity strategy, including through regional cooperation and an assessment of suitable technologies and infrastructure requirements. Planning for abundant low-carbon electricity would help the country meet growing domestic needs while sustaining its clean-electricity achievement.

History

Bhutan’s recorded low-carbon electricity history is entirely a story of hydropower. Generation increased by 0.2 TWh in 1996, followed by mostly positive changes in the 2000s: modest gains in 2002–2005, interrupted by a small dip in 2004, then major increases of 1.8 TWh in 2006 and 2 TWh in 2007, with another gain in 2008. The 2010s brought a mixture of gains and setbacks, including increases of 0.8 TWh in 2013 and 0.6 TWh in 2015. A decline of 0.8 TWh in 2018 was followed by strong growth of 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, showing renewed progress and the importance of sustained clean-electricity expansion.

Electricity Imports and Exports

Balance of Trade