Bhutan commissions first utility-scale solar plant

The Sephu solar project currently has a capacity of 17.38 MW following completion of phase one of project works. Another 5 MW is expected to come online later this year.

Bhutan’s Ministry of Energy and Natural Resources has inaugurated the country’s first utility-scale solar power plant. 

The Sephu solar project, located in the town of Wangdue Phodrang towards the centre of the country, occupies around 44 acres (17 hectares) of state-owned land.

It currently has a capacity of 17.38 MW following completion of the first phase of the project. An additional 5 MW will be added as part of a second phase, scheduled for completion later this year.

The engineering, procurement and construction of the project has been carried out by a joint venture company between Bhutanese construction firm M/S Rigsar and Indian engineering company PES via a contract awarded in 2023. The tender for the project ran in 2022.

The project has been funded by loans and grants from the Asian Development Bank alongside contributions from the Royal Government of Bhutan.

A statement posted by the ministry on social media says the project is an important step towards diversifying Bhutan’s energy generation portfolio and building a resilient energy system that addresses the adverse impacts of climate change.

Bhutan’s national energy policy, unveiled earlier this year, has set a target of reaching 25 GW of installed renewable energy capacity by 2040, including 15 GW of hydropower and 5 GW of solar.

According to figures from the International Renewable Energy Agency (IRENA), Bhutan had deployed 3 MW of solar by the end of 2024, up from 1 MW at the end of 2023.

In March, Juniper Green Energy commissioned a 100 MW solar project in the Indian state of Rajasthan set to supply electricity to Bhutan under a cross-border power agreement.