Energy

Energy security for economic prosperity, social progress and the well being of Bhutanese.
Achieve energy security by harnessing green energy resources, and adoption of transformative and innovative technological solutions.
  1. Serve as the central coordinating agency and the focal point on all matters related to energy, power systems and energy markets including cross-border trade of electricity.
  2. Formulate national energy policies, plans, procedures, and guidelines for sustainable development, planning, construction, promotion, efficient utilisation and management of energy resources and power systems, and cross border trade of electricity.
  3. Undertake sustainable development, utilisation and management of renewable energy resources with deployment of modern state-of-the-art technologies/ systems.
  4. Ensure sustainable energy security for the country by adopting transformative and innovative technologies, along with steady state and dynamic energy supply and demand analysis.
  5. Promote reliable, safe, equitable and quality supply of energy to the domestic market.
  6. Approve/ sanction techno-economic clearances for DPR/ Feasibility studies, and issue/enforce concessions and agreements for development, construction and management of energy resources and energy infrastructures.
  7. Enhance productivity and energy savings through energy efficiency and conservation measures.
  8. Review and assess power markets, cross border negotiations on power trade and tariffs including undertaking initiatives for energy market diversification.
  9. Address emerging threats to critical energy infrastructure and national emergency responses related to energy.
  10. Promote and conduct applied research, development, demonstration and adoption of clean, green, emerging and innovative technologies.
  11. Reduce dependency on use of fossil fuels by substitution with renewable energy.
  12. Assess and provide technical advisory services on the energy and climate change related national issues, including accessing carbon markets for renewable energy projects.
  13. Create enabling eco-systems for participation of Bhutanese in the construction of renewable energy projects including providing goods and services.
  14. Introduce suitable energy sector reforms for growth and enhancing delivery of service; and
  15. Facilitate and mobilise resources and project structuring including access to green bonds, climate funds and carbon markets and other innovative financing mechanisms in coordination with relevant agencies.
  1. Formulate national energy policies and development plans.
  2. Carry out investment planning and strategies for implementation and financing mechanism of Renewable Energy projects including climate financing and accessing of carbon markets.
  3. Examine the domestic electricity pricing determined and recommended by the Electricity Regulatory Authority and recommend to the government for subsidy requirements.
  4. Coordinate with relevant agencies on risk such as foreign exchange, royalty and issues dealing with incentives and subsidies. 
  5. Facilitate single window clearances (land acquisition, EIA, forest, customs duties and taxes, securities etc).
  6. Facilitate consultations and dialogues on energy with stakeholders at national, regional and international levels.
  7. Formulate and negotiate power export tariffs.
  8. Manage various aspects of Bhutan’s relationships with external entities which includes negotiation and implementation of multilateral and bilateral agreements including MoUs on energy co-operations.
  9. Collect and compile energy Data and carry out analysis and reporting for Planning and Sector Performance monitoring and evaluation.
  10. Update Electricity File of Budget, Policy and Fiscal Framework Statement of the Ministry of Finance.
  11. Monitor and ensure compliance to Concession Agreements (CAs), Project Development Agreements (PDAs) and the O&M contracts; and
  12. Focal point for the Department on overall coordination with ERDD, PSMD and EIMD including other sectoral agencies on all matters related to policies, planning, budgeting, compliance monitoring and evaluation of the sector.
  1. Update and implement Renewable Energy (RE) Resources development in keeping with Master Plans, Roadmaps, Strategic Plans and other national Programs.
  2. Undertake Reconnaissance and Pre-feasibility studies for Hydropower projects including environmental and social impacts assessment in keeping with National hydropower Development Guidelines.
  3. Facilitate/undertake DPRs/FSRs of utility scale RE projects.
  4. Carry out detailed techno-economic and socio-environmental vetting and appraisal of DPRs/FSRs of hydropower and utility scale RE projects.
  5. Issue Technical Clearance/Sanction of DPRs/FSRs of RE Projects.
  6. Develop and update RE Development Guidelines, Standards, etc. and ensure compliance.
  7. Undertake bidding, tendering and contract management of RE projects.
  8. Undertake smart water resource assessments, hydrological modelling, power potential/optimization & reservoir simulations, geological & geo-technical modelling including rock mechanics, advanced engineering and designs of civil structures, electro-mechanical & hydro-mechanical equipment, alternate RE technologies, etc. through use of latest software/models.
  9. Evaluate development of potential RE projects as per relevant international carbon market mechanisms.
  10. Promote deployment of state-of-the-art and efficient technologies for construction of RE projects.
  11. Undertake GIS based spatio-temporal analysis for technical investigation, resource mapping and development planning of RE projects; and
  12. Undertake capacity building to enhance expertise in modern RE technologies/systems.
  1. Plan national power systems/grid including update of the National Transmission Grid Master Plan.
  2. Design and facilitate approval of Associated Transmission Systems for electricity generation for domestic consumption and export.
  3. Carry out transmission and distribution system analyses to ensure safety, efficiency, adequacy and reliability of national power systems.
  4. Assess energy security of the country through steady state and dynamic supply-demand analyses, and generation and load forecasting.
  5. Facilitate and provide techno-economic clearance for transmission system expansion.
  6. Carry out allocation of power to industries and demand side management.
  7. Institute grid discipline mechanism.
  8. Carry out grid Integration planning and grid security assessment for alternative renewable energy, energy storage systems and smart grid technologies, and operation planning mechanism of such systems.
  9. Carry out deep data analyses of power system and reporting for planning and performance monitoring and evaluation of national power systems.
  10. Undertake power/energy market assessment and creation, and energy trade including facilitation of power import/export.
  11. Facilitate Power Purchase/Sale and other agreements for cross-border trade of electricity.
  12. Facilitate establishment of energy aggregator for diversification of cross border electricity trade; and
  13. Serve as Secretariat for Bhutan Power System Coordination Committee.
  1. Explore and promote new & innovative renewable energy technologies.
  2. Promote and advocate Energy Efficiency and Conservation.
  3. Facilitate and develop projects and programs to promote and demonstration of new & innovative renewable energy technologies including resource mobilisation.
  4. Carry out detailed techno-economic and socio-environmental vetting and appraisal of DPRs/FSRs of new and innovative RE projects.
  5. Carry out and facilitate energy audits of residential & commercial buildings and industries.
  6. Promote and develop Green Hydrogen and hydrogen derivatives to drive reduction of fossil fuel in the country.
  7. Promote PV prosumers in collaboration with relevant agencies.
  8. Facilitate and develop Energy Efficiency projects.
  9. Set technical specifications for minimum energy performance standards (MEPS).
  10. Execute pilot demonstration projects encompassing new and innovative renewable energy technologies.
  11. Develop and update guidelines related to energy efficiency and conservation.
  12. Carry out research and promote adoption and application of emerging technologies including ML, AI, IoT, digitalization etc. in the Energy sector; and
  13. Carry out capacity building activities related to promotion and adoption of new and emerging RE technologies.

PURE PLATFORM BHUTAN 

About

Most regions of the Hindu Kush Himalaya (HKH) including Bhutan, face year-round irrigation challenges due to the mountainous terrain and settlements located at higher elevations, far from water sources. Renewable energy-powered water pumps offer a sustainable irrigation solution and an alternative to diesel pumps, particularly for dispersed farms, to boost agricultural yields and safeguard farmers' livelihoods in a changing climate. However, critical market information to scale the solution -such as demand, location, and required investment remains limited.

PURE (Productive Use of Renewable Energy) is a transformative decision support platform that optimizes renewable energy planning for river-based lift irrigation systems. Using satellite imagery and advanced modelling, PURE integrates diverse datasets and enables user-guided analysis, allowing stakeholders to:

  • Select customizable data layers, including administrative boundaries, physiographic zones, transmission and distribution lines, crop and irrigation requirements, river networks, canals etc.
  • Generate integrated visualizations of renewable energy demand for river-based lift irrigation systems, cost predictions and enabling infrastructure, such as utility connections, market centres etc.
  • Analyse results at national, dzongkhag and gewog levels through interactive graphics and tables.


Designed for governments, developers, and researchers, PURE transforms complex geospatial and multi-data sets into simple actionable insights - identifying and quantifying renewable energy-powered lift irrigation opportunities to strengthen climate resilience in agriculture and enhance food security.

PURE is developed by the International Centre for Integrated Mountain Development (ICIMOD) and Department of Energy (DoE), under the Women’s Empowerment through Renewable Energy-powered Decentralized Lift Irrigation Systems in Bhutan (WERELIS-Bhutan) project, supported by the International Development Research Center (IDRC), Government of Canada.         

Power Clearance 

  1. What is the purpose of power clearance?
Power Clearance is a part of sectoral clearance and a prerequisite for obtaining a business license from the Department of Industry. Additionally, it is also a requirement for existing industries seeking to expand their operations by requesting additional power to accommodate the revised capacity of their activity.   
  1. What Services are available for Power Clearance?
Applicants can avail three different service types:
  • Power Clearance for new application
  • Power Clearance for additional power requirement
  • Renewal of power clearance
  1. Who can avail the service?
  • a. Manufacturing and production industries with the power requirement of 353kVA (300kW) and above. 
  • b. All data center processing and hosting activities.
Manufacturing and production industries with power demand below 353 kVA (300 kW), as well as all service sector activities regardless of their power capacity requirements, may obtain power clearance directly from Bhutan Power Corporation (BPC) through the online service portal available at  https://osr.bpc.bt/  
  1. What documents do I need to submit?
Applicants are required to provide the necessary information in the online system, including details such as the proponent’s biodata, type of industrial raw materials and finished products, project location, and the anticipated power requirement. While submission of supporting documents is not mandatory at the time of applying for power clearance, the applicant may be requested to furnish additional information or documentation if deemed necessary during the review process
  1. How to avail the service?
Visit https://ibls.systems.gov.bt/ and log in using Bhutan NDI on the homepage of the Integrated Business Licensing System (IBLS). Under the “Online Available Services”, go to “Power Clearance Service” to apply.  
  1. How long does it take to process the application? Power Clearance applications are generally processed within ten(10) working days. However, depending on the magnitude of the power requirement and the availability of the grid infrastructure, the processing period may extend up to thirty (30) working days. 
 
  1. What is the validity of power clearance?
Power Clearance Certificate shall remain valid for the period of one year from the date of issuance.  
  1. Can you Renew your Power clearance?
A one-time renewal may be granted subject to the valid justification provided by the applicant which must be deemed valid by the issuing authority. The application for the renewal must be submitted prior to the expiry of the original certificate. Failure to apply for the renewal of the certificate within the validity period will result in automatic cancellation of the allocated power. Any subsequent application shall be treated as a new application, and approval shall be subjected to the availability of infrastructure at the time of the request.  

Power Sanction

  1. How to avail the service?
Currently, the applicants are required to submit the duly filled Power Sanction applications to powerallocation@moenr.gov.bt Application form can be downloaded from here: Power-Sanction-Application-Form.pdf Power Sanction service is in the process of being integrated with IBLS. Until the integration is completed, applicants may submit the duly filled application scanned copy to above email ID OR submit in-person to the Department of Energy, MoENR, Thimphu.
  1. What is the purpose of power sanction?
Power Sanction is the basis for providing power supply facilities for an industry. After acquiring the power clearance certificate, the applicant may apply for power sanction.
  1. What are the requirements to apply for power sanction?
  • The power clearance issue to the industry must be valid when applying for power sanction.
  • The applicant must submit a copy of a valid business licensee issue by the Department of Industry.
While submission of supporting documents is not mandatory at the time of applying for power clearance, the applicant may be requested to furnish additional information or documentation if deemed necessary during the review process.  
  1. What is the validity of power sanction?
Power Sanction Certificate shall remain valid for the period of one month from the date of issuance during which the applicant must sign the Capacity Reserve Agreement (CRA) with the BPC.  
  1. Can you Renew your Power Sanction?
A one-time renewal may be granted subject to the valid justification provided by the applicant which must be deemed valid by the issuing authority. The application for the renewal must be submitted prior to the expiry of the original power sanction certificate. The applicants may note that failing to sign the CRA shall result in cancellation of both Power Clearance and Power Sanction and any request for power allocation shall be treated as new application for power clearance, which shall be subject to review as per the SoP.  
  1. How long does it take to process the application? Power Sanction applications may take up to thirty (30) working days for processing as it requires field assessment to be carried out by Bhutan Power Corporation to assess the infrastructure availability to cater to the industry. 
  For any queries or assistance, please email powerallocation@moenr.gov.bt or contact with relevant officials at 17329716 / 17613620 / 325812, Power System and Market Division, Department of Energy.