ADB and Bhutan Sign $30 Million Loan Agreement for Solar Power Project
On September 24, 2024, the Asian Development Bank (ADB) and the Government of Bhutan formalized a significant loan agreement aimed at enhancing the country's renewable energy capabilities. The $30 million loan is designated for the Distributed Solar for Public Infrastructure Project, which seeks to install solar power systems on rooftops of public buildings across Bhutan, with a total capacity of up to 35 megawatts.
Project Objectives and Impact
This initiative is particularly timely as Bhutan faces increasing electricity demand and challenges related to energy security, especially during the winter months when hydropower generation is insufficient. By diversifying its energy sources through solar power, Bhutan aims to bolster its energy resilience and support its national priorities related to climate adaptation.
ADB's Energy Specialist, Jongmi Son, emphasized that this project will not only provide reliable power to essential public services but will also serve as a model for future expansions into industrial, commercial, and residential sectors. The project includes an innovative agrivoltaics pilot component, which aims to simultaneously address food and energy security in a co