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Renewables Readiness Assessment: Kingdom of Bhutan

Bhutan prioritises sustainable development and environmental conservation alongside economic growth. As the country develops, a diversified mix of renewables can support growth and improve people’s livelihoods.


Bhutan has long aspired to grow in a sustainable manner, prioritising both the well-being of its citizens and environmental conservation. The country’s Gross National Happiness indicator underlines the need for sustainable and equitable socio-economic development, environmental conservation, preservation and promotion of culture, and good governance.

This Renewables Readiness Assessment (RRA) shows how Bhutan could achieve long-term energy security through a diversified and sustainable supply mix. With power-generation costs falling steadily and technologies maturing, the business case for a diverse mix of renewables has never been stronger. As Bhutan continues developing, renewables can support sustainable economic growth and improve people’s livelihoods.

The Department of Renewable Energy, part of Bhutan’s Ministry of Economic Affairs, undertook the study in collaboration with the International Renewable Energy Agency (IRENA) to explore options in both the electricity and end-use sectors.

Key recommendations:

  • Strengthen the renewable energy policy framework
  • Operationalise the renewable energy development fund
  • Promote renewables for productive use
  • Establish enabling conditions for prosumers
  • Stimulate electric mobility for public and private transport
  • Incentivise renewable applications for heating
  • Promote energy efficiency in conjunction with renewables
  • Enhance the capacity of government officials
  • Foster entrepreneurship through skills development and other interventions
  • Increase public awareness through pilot projects in social sectors

Watch a video about Bhutan's renewable energy potential.