Construction of Lunana Mini Hydropower Project to begin in April

2026-02-09 - 06:26

Construction of the 500 kW Lunana Mini Hydropower Project, the first hydropower project to be built at an elevation of around 4,200 metres above sea level in Bhutan, is scheduled to begin in April. The project is a flagship initiative under Bhutan’s 13th Five-Year-Plan (FYP). Funding is being provided by the Government of India (GoI) under its Project Tied Assistance framework, through a Nu 1.50 billion allocation for small hydropower, solar and wind projects. Druk Green Power Corporation (DGPC) prepared the Detailed Project Report, and the Royal Government of Bhutan (RgoB) has entrusted DGPC with implementation of the generation works, while BPC will implement the transmission and local distribution network. Construction is expected to take more than 24 months due to the short working season caused by harsh winter conditions, during which all site works will have to be suspended. According to DGPC, “The project will deliver 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 and improved energy access is expected to 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 is also expected to reduce reliance on fossil fuels, and there is a proposal to introduce a hot water distribution system for residents by using surplus generation during non-peak demand periods for water heating. The project is expected to benefit around 699 people across 13 villages in Lunana, comprising 197 households. Lunana has no motorable road access, and residents typically walk about six days to transport essential supplies using head loads, horses or yaks. In recent years, some residents have also used helicopter services. Along with traditional transportation methods, the project will largely depend on helicopter services to transport manpower, construction equipment and materials, and generating equipment.