India–Bhutan Renewable Partnership Expands Beyond Hydropower with Strategic MoU for Clean Energy Cooperation

In a landmark move to diversify the regional clean energy landscape, India and Bhutan have signed a Memorandum of Understanding (MoU) aimed at expanding their long-standing energy collaboration beyond hydropower to include solar, wind, biomass, green hydrogen, and energy storage technologies.

The agreement signifies a new era of strategic energy diplomacy between the two Himalayan nations, reinforcing India’s role as a technology and investment partner in Bhutan’s renewable transition. For decades, hydropower has been the backbone of Bhutan’s energy cooperation with India — both as a domestic economic driver and a key export commodity. The new MoU now broadens this cooperation to encompass emerging sectors that align with both nations’ carbon neutrality goals.

The partnership will facilitate joint research, technology transfer, and capacity building, enabling Bhutan to establish a more diversified and resilient energy portfolio. India will provide financial and technical support, with a focus on scalable project development and market integration.

Energy analysts highlight that this shift marks a strategic recalibration of Bhutan’s renewable policy, positioning it as a regional hub for clean energy innovation. Beyond infrastructure, the cooperation also paves the way for cross-border electricity trade and investment mobilization, potentially enhancing Bhutan’s participation in South Asia’s evolving green power market.

Experts note that while hydropower continues to dominate Bhutan’s export mix, the inclusion of solar and hydrogen projects could mitigate seasonal generation fluctuations and strengthen energy security. The focus on green hydrogen and energy storage technologies also aligns with India’s own clean energy roadmap under the National Green Hydrogen Mission, creating synergies for joint R&D and project execution.

However, policy specialists caution that the success of this MoU will depend on effective implementation frameworks, particularly around financing mechanisms, grid integration, and regulatory harmonization. The agreement’s true test lies in how swiftly the two countries can translate this partnership into bankable, on-ground renewable projects.

This MoU comes at a time when South Asia is witnessing a renewed momentum in clean energy alliances, with India deepening partnerships across the region — including Nepal, Bangladesh, and Sri Lanka — to promote cross-border clean power corridors.

By extending its partnership with Bhutan into new energy domains, India reaffirms its vision of a sustainable, interconnected South Asian power market, while Bhutan positions itself as a frontrunner in the region’s green transformation journey.