Bhutan’s electricity production increased by 40 per cent last year, with exports to India rising by nearly 45 per cent. However, the country continues to depend heavily on imported petroleum products, according to the National Statistics Bureau’s Annual Environmental Accounts Statistics 2025.
The report states that Bhutan generated more than 16,300 gigawatt-hours of electricity last year, mainly driven by the commissioning of the Punatsangchhu II hydropower project.
Electricity exports to India increased by nearly 45 per cent to around 8,000 gigawatt-hours during the period.
Domestic electricity consumption also increased by more than 25 per cent. Industrial consumption rose by nearly 26 per cent, while household consumption increased by around 21 per cent.
Despite the growth in hydropower production, Bhutan’s dependence on imported petroleum products, mainly used in transport, remains high.
Bhutan imported around 345,000 kilolitres of oil from India last year, enough to refuel roughly 6.9 million SUVs, assuming an average tank capacity of 50 litres.
Petrol imports increased by around 39 per cent, from more than 71,000 kilolitres in 2024 to almost 100,000 kilolitres last year.
Diesel imports also rose by 28 per cent, from nearly 200,000 kilolitres to around 246,000 kilolitres.
The report attributes Bhutan’s continued dependence on imported fossil fuels to the absence of domestic petroleum and natural gas reserves.
The NSB notes that dependence on fossil fuels is expected to continue until electric vehicles become more affordable.
Namgay Wangdi
