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Titled "Empowering Energy Security & Sustainable Growth," the policy consolidates and supersedes several prior frameworks, including the Bhutan Sustainable Hydropower Development Policy 2021, Alternative Renewable Energy Policy 2013, Domestic Electricity Tariff Policy 2016, and National Energy Efficiency & Conservation Policy 2019.
According to the National Energy Policy released in June 2025, Bhutan aims to expand its total installed capacity to 25 GW by 2040 — 20 GW from hydropower and 5 GW from solar and wind. This strategy focuses on balancing export-oriented hydro projects with localised renewable generation to ensure year-round energy security.
The introduction of solar and wind projects helps Bhutan stabilise supply throughout the year. The 500 MW Reliance solar farm and local solar-wind installations like those in Sephu and Rubesa will cover winter shortfalls and reduce the need to import power during dry months.
Market-Oriented Reforms: Establishing a domestic trading platform and regional interconnections (e.g., via Renewable Energy Certificates) positions Bhutan as a green energy exporter, potentially boosting revenues beyond the current 38% electricity share in total energy supply (793 KTOE in 2022).
Uruguay's shift to renewables, he argues, demonstrated that clean energy can be cheaper, more stable, and create more jobs than fossil fuels. Once the country adjusted the playing field that had long favored oil and gas, renewables outperformed on every front: halving costs, creating 50,000 jobs, and protecting the economy from price shocks.
Other concerns focus on cost and scalability. While Uruguay's approach has delivered low prices, some energy analysts worry that replicating the model in countries with higher demand could require costly improvements to transmission infrastructure and significantly more storage.
The results speak for themselves. Today, Uruguay produces nearly 99% of its electricity from renewable sources, with only a small fraction—roughly 1%–3%—coming from flexible thermal plants, such as those powered by natural gas. They are used only when hydroelectric power cannot fully cover periods when wind and solar energy are low.
Uruguay did what most nations still call impossible: it built a power grid that runs almost entirely on renewables—at half the cost of fossil fuels. The physicist who led that transformation says the same playbook could work anywhere—if governments have the courage to change the rules.
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