Bhutan: Preparing Smart and Green Grid Program

The Smart and Green Grid Program, a results-based lending (RBL) program, in Bhutan will support the government's long-term commitment to the National Energy Policy 2025 and the Renewable Energy Development Roadmap 2040 by addressing bottlenecks in the power grid that constrain the country's ability to meet growing electricity demand and increase green electricity exports. By modernizing and digitalizing grid operations, the program will (i) enhance reliability, safety, and climate resilience; (ii) facilitate regional integration through seamless cross-border power flows; (iii) optimize grid efficiency and operations; and (iv) strengthen cybersecurity and the digital resilience of the power system.


PROJECT DETAILS

Commitment Date

Funding Type

Country

Sector

Status

Total Cost

24 Dec 2025

Technical Assistance

Bhutan

Energy

Ongoing

$1.50 million

KEY OUTPUTS

Feasibility studies of advanced grid technologies

Due diligence reports

Strengthened program start-up activities supported and institutional capacity 

FINANCING

$1 million (Technical Assistance Special Fund)

$500,000 (Innovative Finance Facility for Climate in Asia and the Pacific Grant Trust Fund)