Invest in Bhutan’s Renewable Energy Sector

Bhutan’s renewable energy sector plays a crucial role in its economy and environmental sustainability. As the world’s only carbon-negative country, Bhutan stands as a global leader in clean energy production, primarily through hydropower. The country not only meets its domestic electricity needs but also generates substantial revenue through energy exports, reinforcing its commitment to green development.

With renewable energy contributing 12% to the GDP and an installed capacity of 2,500 MW, Bhutan has immense potential for expansion. The government has ambitious plans to increase hydropower capacity to 12,000 MW and solar capacity to 1,000 MW, positioning the country as a powerhouse of sustainable energy in the region.

Bhutan’s renewable energy landscape is dominated by hydropower, yet a vast portion of its potential remains untapped. The country has an estimated hydropower potential of 30,000 MW, with only around 8% currently utilized. To diversify its energy portfolio, the government is actively developing additional hydropower projects while also exploring solar and wind energy.

Electric mobility is emerging as another key area for growth. The government has introduced subsidies for electric vehicles (EVs) and is expanding charging infrastructure to encourage adoption. This transition reduces reliance on fossil fuels and strengthens Bhutan’s energy security. Additionally, there is growing interest in alternative renewable energy sources such as biomass energy in rural areas and agri-photovoltaic systems, which integrate solar power with agricultural practices.

Bhutan’s renewable energy growth is driven by forward-thinking policies, government support, and strategic partnerships. These factors create a favorable environment for investment, making Bhutan an attractive destination for those looking to participate in the expansion of sustainable energy. With continued development, Bhutan is poised to further solidify its position as a leader in clean energy and environmental stewardship.
Investment info

Investment Information

Investment Opportunities in Bhutan’s Renewable Energy Sector
Bhutan offers significant investment opportunities in its renewable energy sector, driven by its commitment to sustainability and energy security. The country is developing new hydropower projects, including run-of-the-river types, and expanding solar and wind energy projects to diversify its energy mix. Investments in biomass energy in rural areas, EV charging infrastructure, and agri-photovoltaic systems further enhance Bhutan’s clean energy landscape.

Growth Drivers for Renewable Energy Investment
Key drivers include the government's strong policy support and ambitious renewable energy targets, which create a stable investment environment. Bhutan also has high export potential, especially to neighboring India, where clean energy demand is growing. Technological advancements are making renewable technologies more efficient and cost-effective. Moreover, Bhutan’s push for energy security by reducing dependence on fossil fuels adds to its appeal for investors.

Investment Requirements
A minimum investment of 20 million is required under the Alternative Renewable Energy Policy, which supports the development of solar, wind, biomass, and other renewable energy sources. With strong government backing and strategic growth in place, Bhutan presents an attractive opportunity for investors in the renewable energy sector.
Equity Ownership
As Per the Policy
Minimum Investment
20 Million Ngultrum
Time Taken
Up to 1 Year or More
Revenue
Not Available
Investment Support

How Can Basnet Attorneys and Law Help?

Setting up a company or investing in Bhutan requires expert legal guidance to navigate business registration, compliance, and investment regulations. Basnet Attorneys & Law specializes in corporate and investment law, providing tailored legal solutions to ensure a smooth and hassle-free process for international investors.

Our services include:

Business Incorporation & Registration – Assistance with company formation, and licensing ensuring compliance with Bhutanese corporate laws.

Investment Advisory – Guidance on foreign direct investment (FDI) regulations, ownership structures, and legal incentives.

Regulatory Compliance – Ensuring adherence to Bhutan’s taxation, labor laws, and IT sector regulations.

Contract Drafting & Negotiation – Preparing legal documents, partnership agreements, and investor contracts.

Licensing & Permits – Securing the necessary approvals for IT operations in Bhutan.

Intellectual Property Protection – Safeguarding trademarks, patents, and copyrights for tech businesses.
 

With extensive experience in corporate and investment law, we offer precise legal solutions tailored to the needs of international investors in Bhutan. Our firm provides strategic legal counsel, risk assessment, and compliance oversight to ensure that your business venture operates with legal certainty and regulatory confidence.


Contact Basnet Attorneys & Law today for a consultation on investing in Bhutan with a legally sound foundation.