03 | THE DELIVERY – ENERGY
ENERGY
Harnessing hydropower in Bhutan
The technology behind hydroelectric power dates back almost 150 years and today several thousand plants worldwide boast a total installed capacity of more than 1,400 GW — making it the largest source of renewable energy, according to the International Renewable Energy Agency (IRENA). In 2024, the OPEC Fund provided US$317 million to the energy sector in partner countries worldwide.
At the turn of the 21st century, less than a third of Bhutan’s popula- tion had access to electricity. But two decades later, that figure had soared to 100 percent — and hydropower has been the key to this runaway success. Much more lies in store, however, as the Himalayan kingdom has barely scratched the surface of its renewable reserves. According to official estimates, Bhutan has so far developed just 7 percent of its hydropower potential, spread across more than 150 sites nationwide. That is the backdrop to the OPEC Fund’s US$50 million loan to help develop two hydropower plants — first Gamri (rated at 45 MW) in the east of the country and then Begana (25 MW) in the west. Once fully operational, the two plants will improve power reliability for around 50,000 households in regions including Trashigang, the most densely populated area of Bhutan on the main trade route to the capital Thimphu. Designed to fulfil local demand via mini-grids, the plants will also be able to plug into the national grid. At peak capacity, Bhutan already exports substantial amounts of clean energy to neighboring India, with the possible addition of Bangladesh in the near future. A climate champion, Bhutan is one of only three countries world- wide that is fully carbon neutral — thanks to its relentless focus on renewable energy and legal protections granted to its forests, which covered almost 70 percent of the country in 2023.
ABDULHAMID ALKHALIFA President, OPEC Fund
“Our first-ever loan to Bhutan marks a significant milestone in our partnership and reflects the OPEC Fund’s commitment to the country’s development priorities. By supporting the Gamri and Begana hydropower plants, we are contributing to Bhutan’s sustainable energy future. These new renewable energy sources will not only bolster the national grid but also improve livelihoods and strengthen the local economy.”
31 % Share of population with access to electricity (2000)
100 % Share of population with access to electricity (2019)
35,000 MW Combined hydropower potential from 150+ sites nationwide
Sources: World Bank, Ember Energy Institute
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