Bhutan ADB Advances $160 Million Solar Financing

en.Wedoany.com Reported - On July 3, the Asian Development Bank advanced financing arrangements for Bhutan's solar expansion project, providing a $160 million loan from ordinary capital resources to support the construction of solar projects totaling 310 megawatts in Bhutan. This solar financing will cover the development of three solar power plants in Bhutan, involving regions such as Bumthang and Lhuentse, with the main objective of expanding Bhutan's solar power generation scale and enhancing the diversification of the power system.

The solar projects include the 120 MW Wobthang solar plant in northern Bumthang, the 40 MW Pedseling solar plant, and the 150 MW Dramthang solar plant in northeastern Lhuentse. Among these, the Wobthang and Pedseling projects will be constructed by Druk Green Power Corporation, while the Dramthang project is expected to be developed by a joint venture between DGPC and India's Tata Power Renewable Energy Limited.

Bhutan's power company will also build 46 kilometers of transmission infrastructure to connect the three solar plants to the national grid. In addition to the $160 million loan, this solar financing is expected to mobilize approximately $68.7 million in private equity and commercial debt, along with a $500,000 grant from the Japanese government and $1 million in technical assistance from the Asian Development Bank. Subsequent project progress will depend on financing execution, transmission engineering, equipment procurement, and construction scheduling.