India-Bhutan Commit to Strengthening Clean Energy Ties and Exploring New Projects
On March 22, in Thimphu, a significant stride was made towards enhancing the clean energy partnership between India and Bhutan. This development came to light through a Joint Vision Statement on the India-Bhutan Energy Partnership, coinciding with Prime Minister Narendra Modi’s state visit to the Himalayan nation.
The statement underscores a mutual agreement on the vast opportunities available for bolstering the bilateral relationship through clean energy initiatives, including new energy projects and electricity trade.
India and Bhutan’s relationship is deeply rooted in trust, goodwill, and mutual understanding, further enriched by strong friendship ties and extensive people-to-people contacts. The discussions between Prime Minister Modi and his Bhutanese counterpart, Dasho Tshering Tobgay, were comprehensive, covering various aspects of this unique partnership. Both leaders expressed their commitment to elevating their bilateral relations to new heights with a forward-looking approach.
The clean energy partnership between the two nations has significantly contributed to Bhutan’s hydropower sector development and regional energy security. Prime Minister Modi lauded the increasing domestic capabilities of Bhutanese firms and technical agencies in executing energy projects. Meanwhile, Prime Minister Tobgay acknowledged India’s remarkable progress in renewable energy under Modi’s leadership, highlighting initiatives like the International Solar Alliance and the National Green Hydrogen Mission.
Both prime ministers reviewed the bilateral energy cooperation landscape, expressing satisfaction over the successful implementation of joint projects that have spurred economic growth in Bhutan. They eagerly anticipate the commissioning of the 1020 MW Punatsangchhu-II Hydro-electric Project within the year, following the success of the 720 MW Mangdechhu Hydro-electric Project.
The leaders also discussed future prospects, agreeing on the potential of the India-Bhutan energy partnership to enhance energy security and economic strength for both nations. They plan to explore new energy projects in hydropower, solar, and green hydrogen sectors, with Indian entities participating as strategic partners. Additionally, both governments will finalize modalities for new projects, including reservoir hydro projects, ensuring access to financing and market for power sale from Indian financial institutions.
