ADB and Bhutan Sign $30M Agreement for Distributed Solar Energy Project

Ministry of Finance Director Tshering Dorji and ADB Country Director Shamit Chakravarti formalized the agreement.

The Asian Development Bank (ADB) and the Government of Bhutan have signed a $30 million loan agreement to fund the Distributed Solar for Public Infrastructure Project, aimed at generating 35 megawatts of solar power on public building rooftops across Bhutan. This initiative will boost the country's energy security, especially during winter when power demand exceeds supply.

The project aligns with Bhutan's efforts to diversify its energy sources and enhance climate resilience. Ministry of Finance Director Tshering Dorji and ADB Country Director Shamit Chakravarti formalized the agreement.

ADB Energy Specialist Jongmi Son highlighted that the project will ensure reliable power for essential public services and could serve as a model for expanding solar energy into commercial, industrial, and residential sectors. An agrivoltaics pilot will also explore innovative ways to address both food and energy security in Bhutan’s limited land space.

A $1 million technical assistance grant from ADB’s Technical Assistance Special Fund and the Clean Energy Fund will support the development of rooftop solar investment guidelines, pilot new solar technologies, and train the local workforce—particularly youth—in solar-related business areas. Additionally, it will help build the capacity of Druk Green Power Corporation Limited for future solar energy projects.