Bhutan seeks India deals in US$15 billion hydropower push to raise national happiness

The kingdom, which uses a Gross National Happiness index, is looking to unlock value in its abundant lakes and rivers through partnerships with India

Cooperation in hydropower development has been a cornerstone of Bhutan’s bilateral ties with India, which buys electricity from the Himalayan kingdom

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A hydropower project in Wangdue Phodrang, Bhutan, on August 24, 2018. Photo: AFP

Published: 2:32pm, 25 Jan 2024

The Himalayan kingdom of Bhutan is aiming to ramp up its rich hydrological resources with an eye on boosting the country’s happiness quotient.

Home to glacial lakes and cascading rivers, the landlocked country is looking to unlock value in its abundant water resources through partnerships with neighbouring India, and explore business opportunities outside its borders.

“We are talking to a lot of strategic partners in India today, and we also look forward to talking to strategic credible international partners,” said Ujjwal Deep Dahal, CEO of Druk Holding and Investments, the commercial arm of the Royal Government of Bhutan.

Perched between China and India, Bhutan is known for its pioneering of a Gross National Happiness index, an alternative economic gauge that takes into account factors such as recreation, emotional well-being, ecological diversity and living standards.

Hydrological generation contributes up to 15 per cent of Bhutan’s GDP, which also relies heavily on agriculture and tourism.

Bhutan’s total installed capacity for hydrological power is currently about 2,500 megawatts, and it will add around 1,000 megawatts by next year. The government hopes to have a capacity of 4,000 megawatts in the medium term, according to Dahal.

“We are looking to discuss more hydro projects to the tune of about 10,000 megawatts,” he said, adding that these would be planned over the next decade.