How does hydroelectric power support Bhutan’s economy?

Hydroelectric power is a cornerstone of Bhutan’s economy, serving as the nation's primary source of energy and its top export.12

The development of this sector began in earnest with the Chhukha Hydel project, which was completed in the late 1980s. This project was a landmark investment that allowed Bhutan to meet its domestic energy needs while generating surplus electricity to export to India. The revenue generated from these energy sales was instrumental in financing the project itself, establishing a successful model for further infrastructure development.31

Following the success of the Chhukha project, Bhutan commissioned several additional dams and generators. By the early 21st century, electricity had surpassed other goods to become the country’s principal export, playing a vital role in the nation's economic growth and its trade relationship with India. This focus on harnessing the country's significant hydroelectric potential has been a key priority within Bhutan's series of five-year development plans.123