Bhutan launches construction of first large-scale ground-mounted solar power plant
The government of Bhutan has started construction of the country's first large-scale ground-mounted solar power plant, the Sephu Solar Project, which has an installed capacity of 17.38MW.
The Government of Bhutan's Department of Energy (under the Ministry of Energy and Natural Resources of Bhutan) will oversee the work on the project, the construction of which will be carried out by a joint venture between Bhutanese construction company M/S Rigsar and Indian engineering firm PES.
The Bhutanese government plans to complete construction of the project by the end of 2024. At that time, the power plant will be handed over to Druk Green Power, the Bhutanese power utility, for operation. According to the Bhutanese government, the project is being funded primarily by the Asian Development Bank, which has committed to provide grants and loans to cover the $11 million project cost.
The Sephu plant will be the first large-scale ground-mounted solar project in the Bhutanese solar industry, with only one 180kW plant in operation in Rubesa, and will be a central component of Bhutan's growing solar industry. The Bhutanese government plans to have 500MW of installed solar capacity by the end of 2025 and 1GW by the end of the century.Bhutan is looking to diversify its energy mix and reduce its dependence on power imports from India.
Currently, biofuels and hydropower dominate Bhutan's energy mix. According to the International Renewable Energy Agency (IRENA), Bhutan will have an installed power capacity of 2.3GW in 2021, of which 84 per cent will come from renewable energy sources. Of this, 54 per cent is from bioenergy and 46 per cent from hydropower, the reliance on which often leads to disruptions in Bhutan's energy grid. During the winter months when energy demand is high, Bhutan's hydropower capacity drops significantly.
Loknath Sharma, Bhutan's Minister of Economic Affairs, said in a speech in February that Bhutan's power grid could generate about 2.3GW of electricity in the "remaining time", but in winter, when temperatures drop and rivers freeze, power output can fall to 500MW.
Bhutan's energy demand in winter is as high as 670MW, and by 2030 it will be 1.5GW. In recent winters, Bhutan imported about $9.7 million (Nu 800 million) of electricity from India. It is important for the Bhutanese government to ensure that power supply is not affected by seasonal fluctuations or the cost of foreign imports.
