National Energy Policy 2025.

This National Energy Policy (Policy) provides for Bhutan’s goals, objectives and strategies towards supporting the national agenda of high-income GNH Economy by 2034, and long-term energy security by achieving a total installed capacity of 25,000 MW by 2040. It supersedes the following policies and all other contradictory policy provisions: Alternative Renewable Energy Policy 2013; Domestic Electricity Tariff Policy 2016; National Energy Efficiency and Conservation Policy 2019; and Bhutan Sustainable Hydropower Development Policy 2021. The objectives of this Policy are, ensuring energy security and competitive energy supply, fueling sustainable socio-economic growth, enhancing resilience against climate change, attracting investments, promoting energy efficiency and conservation, fostering institutional growth and capacity building.
The Policy lays down the institutional arrangements with the Ministry of Energy and Natural Resources (MoENR) responsible for formulating and guiding the policy. The policies towards energy resources development are laid down, which includes hydropower projects, solar and other renewable energy resources such as wind, geothermal, biomass, hydrogen and emerging technologies to expand and diversify the energy supply sources. The policy for concession agreements is provided and strengthening and capacity building of public and private energy institutions is envisaged. Further, strategies are laid down in respect of energy transmission and distribution, land acquisition for renewable energy projects, power allocation and supply, financing to support development of renewable energy projects, and investments.
All renewable energy projects must comply with the national environmental laws and adhere to international best practices, including conducting environmental and social impact assessments. The construction of renewable energy projects shall prioritize engagement of local contractors, workforce, and employees for fostering national capacity building, with a focus on inclusive approach for sustainable development. The Department of energy shall establish a dynamic domestic power market platform for aggregating power supply and demand, facilitating fair supply and trade based on a transparent market-driven pricing mechanism. The tariff for generation, transmission, distribution and retail services shall be based on fair and competitive cost of supply.