ADB approves $160m loan to finance 310 MW solar expansion in Bhutan

Type: Financing · Technology: Solar · Country: Bhutan · Capacity: 310 MW · Value: $160M · Announced: 2026-07-06

The Asian Development Bank (ADB) approved a $160 million loan to finance Bhutan's 310 MW solar expansion, marking the country's first private-majority public-private partnership (PPP) in the energy sector. The project will develop three solar farms: a 120 MW facility in Wobthang and a 40 MW plant in Pedseling, both in Bumthang, and a 150 MW farm in Dramthang, Lhuentse, through a joint venture between Druk Green Power Corporation (DGPC) and Tata Power Renewable Energy Limited. Bhutan Power Corporation will construct 46 kilometers of transmission lines to connect the solar farms to the national grid. The initiative aims to reduce Bhutan's reliance on imported electricity during the dry winter season, when hydropower generation declines, with peak winter demand rising from 487 MW in 2021 to 1,477 MW in 2025. The project includes renewable energy training programs for over 250 people, with at least 70% of beneficiaries expected to be women, and is expected to mobilize approximately $68.7 million in private equity and commercial debt.

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