Bhutan’s 404-megawatt Nyera Amari I and II Integrated Hydropower Project took a significant step forward, following its inclusion in the clean energy partnership between Bhutan and India, earlier this month. However, according to the National Assembly members, there is limited public information regarding the project’s overall progress. At the Question Hour on Friday, they called for greater transparency on its commencement timeline and raised concerns over the project’s repeated delays.
MPs described the Nyera Amari project as one of the most critical projects under the 13th Five-Year Plan, a project first proposed 18 years ago
“The project was originally scheduled to commence in October 2026, but has since been postponed to December 2027. There is now uncertainty among the people as to whether the project will commence at all,” said Tshering Penjor, MP, Dewathang_Gomdar, Samdrup Jongkhar.
“The need for the Nyera Amari project was first raised during the tenure of the first elected government in parliament, which was 18 years ago. With some hydropower projects suddenly breaking ground elsewhere, people are beginning to question what is happening with Nyera Amari,” said Damchoe Tenzin, MP, Thrimshing_Kangpara, Trashigang, NA.
On 8th May, Tata Power and Druk Green Power Corporation amended their original Memorandum of Understanding, signed in November 2024, to formally add the Nyera Amari I and II project to their joint development pipeline.
The ADB approved a USD 5 M concessional loan in December 2023 to update the Detailed Project Reports for Nyera Amari and the Bunakha project. Since then, work has been ongoing to update the project’s Detailed Project Report (DPR) and Environmental and Social Impact Assessment.
“The contract for the Nyera Amari project has been awarded to Tata Power, and funding has been secured from the ADB. However, before work can commence, the Detailed Project Report (DPR) must be prepared, following which a formal agreement will be signed. Only then will we be in a position to indicate a projected completion timeline,” said Gem Tshering, Energy and Natural Resources Minister.
The project will be developed with mutually agreed equity participation between the Druk Green Power Corporation and Tata Power.
During the session, the discussion extended beyond domestic timelines.
As the regional clean energy competition intensifies, one of the MPs asked whether Bhutan’s hydropower pipeline translates into a coherent export strategy.
“India and China are also ramping up their efforts in renewable energy production. In light of this, has any research been conducted on how Bhutan can remain competitive in terms of pricing, market access, and tariff rates in the international energy market? questioned Loday Tsheten, MP, Gangzur_Minjey, Lhuentse, NA.
Minister Gem Tshering said that the South Asian Grid, a multilateral energy integration initiative, could open electricity export corridors for Bhutan.
“If the cross-border transmission project progresses as planned, there are indications that Bangladesh will require electricity from Bhutan. Therefore, once the projects are completed, finding a market for the energy should not be a concern.”
Currently, Bhutan has more than 10 projects already operational and generating close to 3,600 megawatts of electricity. According to the minister, another eight are under construction, with 1,724 megawatts expected to come online by 2028, and a further 3,090 megawatts by 2030.
The government has set an overall clean energy target of 25,000 megawatts by 2040.
Kelzang Chophhyel
Edited by Sonam Wangdi
