May 14, 2026
THIMPHU – The first phase of small hydropower projects with a combined installed capacity of 104MW has been completed and commissioned.
The three small hydropower projects – the 18MW Suchhu, 32MW Yungichhu, and 54MW Burgangchhu, are expected to generate 494 million units (MU) of electricity annually.
The 18MW Suchhu project was commissioned in April 2025, while the first generating units of the Yungichhu and Burgangchhu projects were synchronised with the national grid in April 2026.
Each project consists of two generating units. Both units of the Suchhu project have already been commissioned, while the second units of the Yungichhu and Burgangchhu projects are expected to be commissioned in May 2026.
The estimated total cost for the first phase of the small hydropower projects was Nu 11.9 billion.
However, the projects experienced variations in both cost and completion timeline. The delays were mainly attributed to geotechnical challenges and, to some extent, poor coordination among the civil works, hydro-mechanical, and electro-mechanical contracts.
Initially, the 18MW Suchhu project was expected to be commissioned by the end of 2024, while the 32MW Yungichhu project in Lhuentse and the 54MW Burgangchhu project in Nangkhor were scheduled for commissioning in the first half of 2025.
The official said that annual revenues from the projects would depend on domestic tariffs determined by the Electricity Regulatory Authority.
Most of the electricity generated during summer will be exported through Indian energy exchanges, where tariffs fluctuate depending on market demand and supply.
Electricity generated during winter will primarily support the domestic market to address power shortages during the lean river discharge months.
The official said that a more accurate revenue forecast would be available after at least one year of operation.
The projects are also expected to significantly improve electricity supply reliability in areas surrounding the project sites and help address winter power shortages through firm power generation during the dry season.
According to a project official, implementing the small hydropower projects has been a major success, particularly in building the capacity of both Druk Green Power Corporation (DGPC) and Bhutanese private sector firms in areas such as design, engineering, financing, construction, erection, and commissioning.
This marks the first time that all contracts, except for electro-mechanical works, were awarded to Bhutanese contractors. Bhutanese firms carried out most of the works, with only limited external supervision.
Phase-II
Construction of the second phase projects, the 54MW Gamri-I and Bamukparongchhu projects, the 90MW Jomori project, and the 26MW Druk Bindu I and II projects, is progressing well.
Similar to the first phase, Bhutanese contractors have been awarded the civil and hydro-mechanical works for these projects, while the electro-mechanical works are being outsourced to reputed original equipment manufacturers outside Bhutan.
Future projects
DGPC is also in various stages of identifying strategic partners and advancing the 40MW Parochhu and 25MW Begana integrated hydropower projects.
Additionally, DGPC has already started preparing detailed project reports for several projects planned under the third phase of the small hydropower programme.
The project official said that small hydropower projects have significantly boosted capacity building in the country’s hydropower sector.
“The intention is to build on the experience and achievements from these projects and eventually take on much larger hydropower developments,” the official said.