Punatsangchhu-I Hydroelectric Project (PHEP-I)

under construction

The Punatsangchhu-I Hydroelectric Project is a 1,200 MW run-of-the-river hydropower project located on the Punatsangchhu river in Bhutan's Wangduephodrang district. It is the largest hydropower initiative currently under development in Bhutan and aims to increase the country's hydropower capacity by about 30% to almost 4,700 MW, generating an average of 5,670 million units of electricity annually. The project is funded by the Government of India with a 40% grant and 60% loan component and is a key part of India-Bhutan cooperation in clean energy. Construction resumed on April 10, 2026, after a nearly seven-year halt due to geological challenges, with completion expected within five years.