Bhutan’s rising dependence on imported fuel is offsetting the gains from its hydropower exports. This is despite a 12 per cent growth in hydro power exports last year. According to the National Statistics Bureau’s Environmental Accounts report, the country needs to improve energy efficiency and explore cleaner alternatives to reduce its reliance on fuel imports.
Bhutan exported 5,470 gigawatt-hours of electricity last year, earning nearly Nu 20bn, an increase of 12 per cent from 2023.
However, the country also imported electricity worth about Nu 5.9bn, almost double the amount imported in 2023.
The report shows that domestic electricity use jumped by nearly 29 per cent, mostly driven by industrial consumption.
The manufacturing sector alone consumed more than three-fourths of all electricity used within the country.
Despite being a net exporter of clean energy, Bhutan still depends entirely on imported fossil fuels for its fuel needs.
What the country gained in hydropower has been spent almost as much on fuel. Bhutan imported over Nu 15bn worth of petrol and diesel last year, up by more than 35 per cent.
However, not all imported fuel stays in Bhutan.
Nearly 35,000 kilolitres were re-exported, fuel consumed by Indian vehicles operating inside Bhutan or refueling in border towns.
The report stated that while Bhutan’s hydropower sector continues to drive growth, the country’s growing dependency for imported fuel could undercut those gains in the long term unless alternative energy solutions are strengthened.
Hydropower may still be Bhutan’s economic powerhouse but as fuel imports soar, the question remains of how sustainable is Bhutan’s energy advantage.
Namgay Dema
