Himalayan Energy Bridge: India and Bhutan Commission a 1020 MW Hydropower Plant

India and Bhutan have commissioned the Punatsangchhu-II hydropower plant with an installed capacity of 1020 MW. The run-of-river facility, built on the Punatsangchhu River, is the fourth major hydropower project in Bhutan implemented with India’s financial and technical support.

According to official data from Bhutan, the commissioning of the plant increases the country’s total installed hydropower capacity by nearly 40 percent. The generated electricity will be used to meet domestic demand, while surplus power will be exported to India under existing long-term agreements.

Representatives of both sides note that the project contributes to the development of clean energy and strengthens regional energy integration. India also announced the allocation of an additional credit line of approximately 450 million USD to support future hydropower and infrastructure projects in Bhutan. Part of these funds will be directed toward continuing the construction of the Punatsangchhu-I hydropower plant, which is designed to generate 1200 MW.

Under the current cooperation model, Bhutanese hydropower facilities are financed and technically supported by India, while the electricity generated is supplied to the Indian power system under long-term contracts. The commissioning of Punatsangchhu-II further reinforces energy cooperation between the two countries and supports their goals for low-carbon energy development.