In Short : The Asian Development Bank (ADB) and Bhutan signed a loan agreement to fund a solar power project, enhancing Bhutan’s renewable energy capacity. The initiative aims to diversify Bhutan’s energy mix, reducing reliance on hydropower and ensuring a more stable energy supply. This aligns with Bhutan’s sustainable development goals and ADB’s commitment to supporting renewable energy in the region.
In Detail : MANILA, PHILIPPINES — The Asian Development Bank (ADB) and the Government of Bhutan have signed a $30 million loan agreement for the Distributed Solar for Public Infrastructure Project. The project aims to generate up to 35 megawatts of solar power systems on rooftops of public infrastructure across the country.
Energy security in Bhutan has become a growing concern because of rising electricity demand and insufficient power supply, particularly during the winter season. The project will support the Government of Bhutan’s national priority to enhance the climate resilience of energy systems and address energy security concerns through the diversification of energy source.
The loan agreement was signed by Ministry of Finance Director of Department of Macro-fiscal and Development Finance Tshering Dorji and ADB Country Director for Bhutan Shamit Chakravarti.
“Distributed solar in public buildings will provide reliable power supply to essential public services and will serve as demonstration before expanding to industrial, commercial, and residential buildings,” said ADB Energy Specialist Jongmi Son. “The agrivoltaics pilot project can be a promising solution for addressing food and energy security issues simultaneously in a land- constrained country like Bhutan.”
The project comes with a technical assistance grant of $1 million from ADB’s Technical Assistance Special Fund and Clean Energy Fund, which is under the Clean Energy Financing Partnership Facility. This will support the development of guidelines to expand rooftop solar investments, promote new solar technologies through a pilot project, enhance local workforce skills, particularly for young people in new business areas related to solar energy, and strengthen the institutional capacity of Druk Green Power Corporation Limited for solar energy development.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
