Bhutan Sustainable Hydropower Development Policy 2008.

The key objectives of the Bhutan Sustainable Hydropower Development Policy are to: Mobilize funds and attract investments for accelerated hydropower development; Enhance the revenue contribution to the Royal Government; Contribute to socio-economic development; Ensure domestic electricity supply security and reliability; Ensure that the hydropower development is in accordance with the sustainable development policy of the Royal Government, keeping in view the fragile mountain ecosystem of the country; Contribute towards development of clean energy to mitigate problems related to global warming and climate change (pag. 6).
The DoE, a Department under the Ministry of Economic Affairs (MoEA), is responsible for developing the long term policies and plans for the energy and power sector. The functions of the Department are to: Be the Apex body for implementation of this policy. The body will undertake bidding processes for allotment of projects, and promotional and marketing activities for the hydropower sector under this Policy including investor facilitation for hydropower development Formulate national policies, plans, programmes and guidelines related to sustainable development, efficient utilization and management of Energy, Hydropower and Hydromet services in the Kingdom; Lead and encourage the development of renewable energy; etc. (pag. 7).
In order to utilize water resources in a sustainable manner for hydropower generation, it is important to protect water catchment areas by promoting sustainable agricultural/land use practices and nature conservation works. The MoA in collaboration with MoEA shall work out the modalities for integrated sustainable water resources management. A minimum of 1 % of royalty energy in cash shall be made available on annual basis to MoA for this purpose (pag. 17).