Hydropower is the lifeblood of our economy. The sector generates substantial revenue for our country every year. However, Bhutan’s energy landscape is changing, and quite rapidly at that. Our status as a net exporter of electricity is likely to flip by 2026. As per a recent finance ministry report, domestic electricity consumption is expected to outstrip production by a whopping 232 percent in the next two years.

What does this dramatic increase in domestic demand for electricity and reduced export mean for Bhutan?

First, we cannot rely on hydropower for foreign currency earnings for long. Second, this highlights the urgency for Bhutan to expedite harnessing its hydropower potential and diversify its energy mix to meet the demand. And this calls for a bold pivot towards self-sufficiency and sustainability.

While hydropower projects have propelled our nation forward, we are woefully behind in realising our full potential—estimated at 36,900 MW.

Currently, we have an installed capacity of only 2,326 MW, which is drastically short of our initial target of 10,000 MW by 2020. The failures of mega-projects such as the Punatsangchhu-I are stark reminders of how we have bungled up big time. Imagine the liabilities of a project of Nu 35 billion ballooning to a staggering Nu 100 billion.

It is therefore imperative for the government to adopt a more proactive approach. The ambition to increase hydropower capacity by 3,119 MW within the next five years, as outlined in the 13th Plan, is commendable. But is this feasible given our past record?

This goal could be quite difficult to achieve with our current business-as-usual attitude. There must be a cultural shift towards greater accountability and efficiency. Effective planning and timely execution of projects must be our top most priority.

The diversification of the country’s energy portfolio is equally critical. That’s why the government’s plans to invest in solar, wind, and biomass energy are steps in the right direction. This will help bolster our energy security and reduce dependence on hydropower.

This diversification is also prudent in the face of climate change impacts. Hydropower generation is adversely affected by changing weather patterns. We must also take advantage of the increased water volume due to melting of glaciers.

Another step in the right direction is the opening of hydropower development to private investments. The willingness to explore alternative financing options and models will bring innovative practices and competitive spirit that have been sorely lacking in current models.

Considering the current trend of electricity consumption, the government must ramp up hydropower generation. But in doing so, we must be guided by the lessons from our past experience. We have already lost precious time and resources. We cannot afford another mishap with intergenerational impacts. Above all else, we must ensure that our energy projects are not liabilities but assets that drive economic growth.

As a cornerstone of our economy, hydropower will continue to play a vital role. But we must understand that it is more than just that—it is a matter of national security.