ADB Approves $30 Million Loan for Bhutan's Distributed Solar Power Project

Bhutan secures a $30 million loan from ADB to fund its Distributed Solar for Public Infrastructure Project, aimed at enhancing energy security by generating 35 MW of solar power.

The Asian Development Bank (ADB) has signed a $30 million loan agreement with Bhutan to finance the Distributed Solar for Public Infrastructure Project. This initiative aims to generate up to 35 megawatts (MW) of solar power through rooftop installations across public infrastructure, helping Bhutan address its growing energy security concerns and diversify its energy sources.

Solar Power to Address Bhutan’s Energy Challenges

Bhutan has faced increasing electricity demand and insufficient power supply, particularly during winter months when hydropower generation decreases. The Distributed Solar for Public Infrastructure Project is designed to alleviate these issues by enhancing the country's energy resilience. It aligns with Bhutan’s national priority of developing sustainable energy systems to meet its future electricity needs.

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A Step Towards Energy Diversification and Climate Resilience

By investing in solar power, Bhutan is taking a significant step toward diversifying its energy sources, which have traditionally relied heavily on hydropower. The project will contribute to Bhutan's climate resilience, providing cleaner, renewable energy that helps reduce the nation’s reliance on water-dependent power during dry seasons.

Additional Funding for Technical Assistance

The project is supported by a $1 million technical assistance grant from ADB’s Technical Assistance Special Fund and the Clean Energy Fund under the Clean Energy Financing Partnership Facility. This grant will aid in project planning, implementation, and addressing technical challenges related to solar power infrastructure.

The collaboration between ADB and Bhutan marks a milestone in the country’s shift towards a more secure, diversified, and sustainable energy future.