As of 2023, Bhutan stands as a shining example of sustainable electricity generation, with over 93% of its electricity coming from low-carbon sources, particularly hydropower. This remarkable achievement positions Bhutan as a global leader in clean electricity generation. However, Bhutan imports close to 7% of its electricity, indicating a minor reliance on external sources, which could be targeted for reduction as Bhutan continues to build its energy capacity. Looking forward, the nation faces the challenge of electrifying various sectors such as transport, heating, and industry, which will necessitate a significant increase in electricity production. As demand for electricity grows, Bhutan has a solid foundation to expand its production while maintaining its commitment to low-carbon energy sources.
Is Electricity Growing in Bhutan?
In terms of electricity consumption, Bhutan is witnessing a modest increase. The recent data from 2023 indicates that the country's electricity consumption has grown to 15,248 kWh per person, slightly up from the previous record of 15,024 kWh per person in 2021. This growth, although modest, suggests a positive trend towards increased electricity use. Nevertheless, it's concerning that low-carbon electricity generation has seen a decrease from a record high of 14,767 kWh per person in 2020 to 14,193 kWh per person currently—a decline of 574 kWh per person. This reduction in low-carbon electricity generation should be a wake-up call to bolster efforts in expanding and diversifying the country's clean electricity capacity.
Suggestions
To further increase low-carbon electricity generation, Bhutan should consider amplifying its investment in additional hydropower projects as well as exploring alternative clean energy sources such as solar power. By harnessing its abundant natural resources and favorable geographic conditions, Bhutan can diversify its low-carbon portfolio and mitigate the reductions in hydropower generation seen in recent years. Expanding into solar energy would add resilience to its grid and reduce dependency on a single source, addressing variations in hydropower production due to seasonal changes. Additionally, proactive policies promoting the viability of nuclear energy could pave the way for even greater improvements, offering a consistent and scalable option for long-term growth in green electricity.
History
Historically, Bhutan's journey in expanding low-carbon electricity generation has seen significant progress, particularly in the hydropower sector. In the early 2000s, Bhutan experienced steady growth with notable increments in 2002 and 2003. The mid-2000s were marked by a substantial leap in hydropower output, especially between 2006 and 2007, when generation surged by nearly 4 TWh. This upward trend continued, albeit with occasional dips like those in 2011 and 2012. Recently, the late 2010s and early 2020s have shown both impressive gains, such as the 2.7 TWh increase in 2020, and temporary setbacks like the decline in 2021. Most recently, 2023 witnessed a 0.4 TWh boost, aligning with Bhutan's ongoing commitment to its clean energy future
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.