The Government of Bhutan and the Government of India have signed an agreement to work together on renewable energy during Indian Prime Minister Narendra Modi’s visit to Bhutan on November 11, 2025. The agreement was signed between Bhutan’s Ministry of Energy and Natural Resources and India’s Ministry of New and Renewable Energy, reports Saur Energy International.
Prime Minister Modi said the agreement adds a new and important part to the two countries’ relationship, as it will help strengthen Bhutan’s energy security and use India’s experience in renewable energy. He said the two sides will work together on projects related to solar power, wind power, biomass, green hydrogen, and energy storage, describing it as “a good and practical beginning for both countries to design and develop projects together.”
The agreement comes as private companies such as Reliance Power and Tata Power have already shown interest in Bhutan’s renewable energy sector and are investing in hydropower, solar, and energy storage projects.
Areas of Cooperation
Under the agreement, both countries will work together on developing solar, wind, biomass, and green hydrogen projects, along with energy storage technologies. The plan combines India’s technical knowledge with Bhutan’s natural energy potential to create clean and reliable energy projects. According to India’s Ministry of External Affairs, this step expands the partnership between the two countries beyond hydropower and helps both nations move toward cleaner energy and stronger energy security.
Strengthening Ties
The agreement builds on a long history of energy cooperation between India and Bhutan, which has mainly focused on hydropower projects. With the recent opening of the 1,020 MW Punatsangchhu-II hydropower plant, Bhutan’s total power capacity increased by 40 percent. The new cooperation aims to bring similar success in other renewable energy areas and promote joint progress and development.
Financial Support
India also announced a line of credit of INR 4,000 crore to support Bhutan’s energy projects. This financial help will be used to carry out renewable energy projects agreed upon under the new partnership, according to the Ministry of External Affairs.
The agreement is expected to open the way for more joint research, training, and technology sharing between the two countries. It also aims to support stronger economic ties and regional cooperation through clean and sustainable energy projects.
