The OPEC Fund for International Development (the OPEC Fund) and the Kingdom of Bhutan signed a $50-million loan agreement to support the development of two hydropower plants to strengthen energy security in Bhutan. The signing has held during the World Bank/IMF Annual Meetings held in Washington, DC, from 21 October to 26 October 2024.

Bhutan has an estimated 35,000 megawatts (MW) hydropower potential, 7% of which has been developed.

Mr. Abdulhamid Alkhalifa, OPEC Fund president, said at the loan singing ceremony,

By supporting the development of the Gamri and Begana hydropower plants, we are contributing to Bhutan’s sustainable energy future. These new renewable energy sources will not only bolster the national grid but also improve livelihoods and strengthen the local economy.

Mr. Lyonpo Lekey Dorji, Bhutan Finance minister said:

By diversifying our energy sources, Bhutan is reducing its dependency on imported fossil fuels, stabilizing energy costs and promoting job creation in green sectors. Pursuing the development of renewable energy resources supports Bhutan's commitment to remaining carbon neutral and contributes to our global climate goals.

The two new hydropower pants—Gamri, which will be capable of producing 45 MW of electricity, and Begana, which will have a capacity of 25 MW—will improve power supply for 50,000 households and will have an option to plug into the main grid of Bhutan.

• OPEC Fund extends first US$50 million loan to Bhutan to boost hydropower
• OPEC Fund extends first US$50 million loan to Bhutan to boost hydropower