08/01/2026
𝗛𝗶𝗴𝗵 𝗔𝗹𝘁𝗶𝘁𝘂𝗱𝗲 𝗛𝘆𝗱𝗿𝗼𝗽𝗼𝘄𝗲𝗿 𝗣𝗿𝗼𝗷𝗲𝗰𝘁 𝘁𝗼 𝗣𝗼𝘄𝗲𝗿 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗶𝗻 𝗟𝘂𝗻𝗮𝗻𝗮
𝑻𝒉𝒆 500 𝒌𝑾 𝑳𝒖𝒏𝒂𝒏𝒂 𝑴𝒊𝒏𝒊 𝑯𝒚𝒅𝒓𝒐𝒑𝒐𝒘𝒆𝒓 𝑷𝒓𝒐𝒋𝒆𝒄𝒕 𝒊𝒔 𝒂 𝒇𝒍𝒂𝒈𝒔𝒉𝒊𝒑 𝒊𝒏𝒊𝒕𝒊𝒂𝒕𝒊𝒗𝒆 𝒖𝒏𝒅𝒆𝒓 𝑩𝒉𝒖𝒕𝒂𝒏’𝒔 13𝒕𝒉 𝑭𝒊𝒗𝒆 𝒀𝒆𝒂𝒓 𝑷𝒍𝒂𝒏.
The Government of India is providing the funds for the project under its Project Tied Assistance framework, through a Nu. 1.50 billion allocation for small hydropower, solar and wind projects. DGPC prepared the Detailed Project Report and the Royal Government of Bhutan has entrusted DGPC with implementation of the generation works while BPC will implement the transmission and local distribution network.
This is Bhutan’s first hydropower project to be constructed at an elevation of around 4,200 meters above sea level. Construction will take more than 24 months considering the short working season due to harsh winter conditions, during which time all site works will have to be suspended.
The project will deliver reliable, renewable grid electricity to the remote highland communities of Lunana, where households currently rely on solar home lighting systems for basic lighting and firewood for cooking and heating. By improving energy access, the project will strengthen local livelihoods, support sustainable rural development, and help residents remain in their ancestral villages while sustaining traditional occupations and ways of life. The project will help reduce reliance on fossil fuels and there is also a proposal for a hot water distribution system for residents by using surplus generation during non-peak demand periods for water heating.
The project will benefit around 699 people across 13 villages in Lunana, comprising 197 households. Lunana has no motorable road access. Residents typically walk about six days to transport essential supplies using head loads, horses, or yaks. In recent years, some residents also avail helicopter services. Apart from adopting the traditional transportation system using horses and yaks, the project will have to largely depend on helicopter services for transporting manpower, construction equipment and materials, and generating equipment.
A key milestone was achieved on January 7, 2026 with DGPC awarding the contract for Package I: Civil and Hydro-Mechanical Works to M/s Chhimi RD Construction Private Limited, at a contract price of approximately BTN 390 million. DGPC is now in the process of bidding for the Package II: Electro-Mechanical Works. The works are expected to start from April 2026.
Druk Green Power Corporation Limited
