Why is electricity Bhutan’s leading export?

The premise that electricity is Bhutan’s leading export is correct. This status is primarily due to the country’s significant investment in hydroelectric power infrastructure, which has allowed it to harness its vast water resources for energy production.1

The development of this sector was catalyzed by the completion of the Chhukha Hydel project in the late 1980s. This project was a landmark investment that enabled Bhutan to meet its domestic energy requirements while generating a surplus for export. The revenue generated from selling this surplus energy to India proved so successful that it helped finance further infrastructure expansion.12

Since the success of the Chhukha project, Bhutan has brought several additional hydroelectric dams and generators into operation. By the early 21st century, these efforts solidified electricity as the country’s principal export, playing a critical role in its economic growth and development strategy.132