Bhutan's Green Energy Pivot Meets Cryptocurrency Reality Check
Bhutan's green energy pivot has yielded significant economic benefits for the country. The Dorjilung Hydroelectric Power Project, which generates 1,125 MW of clean electricity annually, has increased the national GDP by 2.4 percent. The partnership between Druk Green Power Corporation and Tata Power now includes a portfolio of 5,033 MW after the addition of the Nyera Amari I & II Integrated Hydropower Project.
The project's financing model involves $300 million in IDA financing, $215 million in IBRD financing, and up to $300 million from the IFC. This structure aims to catalyze an additional $900 million in private sector financing and limits direct credit exposure to $150 million. Over the 30-year IDA credit period, the project could earn $4 billion in revenues through taxes, free power, and equity dividends.
Bhutan's Bitcoin reserves have fallen by 70 percent from their peak of 13,000 BTC in late 2024 to 3,119 BTC in 2026. The country has offloaded $230.39 million in Bitcoin since January 2026, averaging $50 million in monthly sales.
The government's strategy is to use mining gains to fund national development. However, the declining Bitcoin reserves create a significant risk for national development projects, including the 10,000 BTC pledge for the Gelephu Mindfulness City.