India and Bhutan have agreed to strengthen their energy partnership. The focus will be on hydropower, renewable energy, cross border electricity trade and transmission connectivity.
The discussions took place during a meeting between Union Power Minister Manohar Lal and Bhutan’s Minister of Energy and Natural Resources Lyonpo Gem Tshering.
The two ministers reviewed ongoing energy projects. They also discussed new opportunities for cooperation in the power sector.
Key areas included hydropower generation, electricity trade, renewable energy, institutional cooperation, capacity building and transmission infrastructure.
Focus on key hydropower projects
The meeting reviewed progress on major hydropower projects. These include Punatsangchhu I, Punatsangchhu II, Sankosh and Chukha.
The projects are expected to increase Bhutan’s power generation capacity. They will also support the supply of clean hydropower to India.
India and Bhutan are working to expand cross border electricity trade. This is expected to strengthen regional energy security.
Manohar Lal reaffirmed India’s support for Bhutan’s long term energy development. Lyonpo Gem Tshering also welcomed India’s continued assistance.
Greater focus on clean energy
Both countries agreed to maintain closer coordination on energy projects. They also stressed the need for timely implementation.
Clean energy cooperation is becoming increasingly important for both countries. It can support regional energy security and sustainable economic growth.
India is Bhutan’s largest trading partner. It accounts for nearly 80% of Bhutan’s total trade.
Bilateral trade crossed $1.9 billion in FY25. This was an increase of more than 46% from the previous financial year.
The latest talks are expected to strengthen the India Bhutan energy partnership. Hydropower, clean energy and cross border electricity trade will remain key areas of cooperation.
