New Delhi: A major step forward for India-Bhutan energy collaboration has been reached with the fifth generating unit of the 1020 MW Punatsangchhu-II hydropower project now operational. The last unit is expected to be online by August, potentially aligning with India’s Independence Day. This project highlights the strong ties between these neighboring countries and shows how energy partnerships can enhance regional growth and address climate change issues.
According to Kuensel, the fifth unit was synchronized with the grid on July 17, adding 850 megawatts of energy. Since December, the four functioning units have produced 1.3 billion units of electricity, generating ₹4.9 billion (Ngultrum 4.9 billion) in revenue. Currently, the project is nearly complete at 99.19%.
The project was inaugurated at a ceremony with various officials, emphasizing the longstanding cooperation between Bhutan and India in the hydropower sector. They have partnered in developing several major hydroelectric projects, like the Chukha HEP and Tala HEP.
Punatsangchhu II is a run-of-the-river hydroelectric facility located in Bhutan’s Wangdue Phodrang district. The Indian government fully funds this project, contributing 30% as a grant and 70% as a loan at a 10% interest rate. The project’s initial budget was ₹37,778 million, later increased to 1020 MW capacity.
Construction started in 2010, originally meant to finish in just seven years. However, delays due to natural challenges, pandemics, and technical issues pushed the deadline back multiple times. The new target for project completion is now set for August 2025.
Former Indian Ambassador to Bhutan VP Haran highlighted that this project promotes sustainable energy. “India has always bought surplus electricity from Bhutan,” he noted. The project, designed to minimize displacement and environmental disruption, is particularly significant as nations shift towards greener energy sources.
The collaboration between India and Bhutan is part of a broader agreement established in 2006, further solidified by a protocol in 2009. Currently, four hydroelectric projects with a total capacity of 2,136 MW are operational, supplying electricity to India.
As Punatsangchhu-II nears completion, it symbolizes more than just energy production. It’s a testament to shared growth, trust, and interdependence between neighboring nations. In a world increasingly focused on energy transition and climate resilience, this partnership could serve as a model for how countries can effectively harness natural resources for mutual benefit.
For more insights into India’s energy strategy, you can visit the Ministry of Power’s official website.
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