ADB and Bhutan Sign Loan Agreement for Solar Power Project

The Asian Development Bank (ADB) and the Government of Bhutan have signed a $30 million loan agreement to fund the Distributed Solar for Public Infrastructure Project. This initiative aims to install up to 35 megawatts of solar power systems on the rooftops of public infrastructure nationwide.

Bhutan faces growing energy security concerns due to rising electricity demand and insufficient power supply, especially during the winter months. The project aligns with Bhutan’s national priorities to enhance the climate resilience of its energy systems and diversify its energy sources to address these challenges.

The loan agreement was signed by Tshering Dorji, Director of the Department of Macro-fiscal and Development Finance at the Ministry of Finance, and Shamit Chakravarti, ADB Country Director for Bhutan.

“Distributed solar in public buildings will ensure reliable power supply for essential services and act as a model before scaling up to industrial, commercial, and residential buildings,” said ADB Energy Specialist Jongmi Son. He also highlighted the potential of the agrivoltaics pilot project to address food and energy security in Bhutan’s land-constrained environment.

The project also includes a $1 million technical assistance grant from ADB’s Technical Assistance Special Fund and Clean Energy Fund. This grant will support the development of guidelines for rooftop solar expansion, promote new solar technologies, train local workers in solar-related industries, and bolster Druk Green Power Corporation Limited’s capacity for solar energy development.

ADB continues its mission to foster a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, working to eradicate extreme poverty since its establishment in 1966.