Bhutan gets EIB loan to add 310 MW of solar, run-of-river hydro

The European Investment Bank (EIB) will provide a 30-year loan worth EUR 150 million (USD 160.2m) to the government of Bhutan to support the construction of solar and hydropower plants in the landlocked South Asian kingdom.

The loan will finance 310 MW of small to mid-size run-of-river hydropower and solar photovoltaic projects, enabling Bhutan to increase its generation capacity while maintaining its status as a net carbon sink, the EIB said on Wednesday.

State-owned hydropower company Druk Green Power Corp will implement the projects.

Bhutan is rich in hydropower resources and uses solar as a complementary source to diversify its power mix. The addition of solar will also enable the country to be less vulnerable to hydro fluctuations and reduce the potential need for power imports during the dry season.

The project will also support economic development by allowing Bhutan to export power across the border and improve access to electricity in remote communities.

According to Druk Green, Bhutan exports 70% of its hydropower output to India, while hydropower revenues account for about 25% of revenues to the exchequer.

(EUR 1.0 = USD 1.068)

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