New Delhi, Jan 15 (AHN) A groundbreaking ceremony for a 240 kW grid-integrated and 25 kW off-grid solar project at Bhutan’s Jigme Namgyel Engineering College in Dewathang took place on Thursday as part of the Himalayan kingdom’s strategy to enhance renewable energy.

"India is glad to support Bhutan’s clean energy vision and solar capacity development," the Embassy of India in Thimphu said in a post on X.

Earlier this week, a groundbreaking ceremony was also held for a 200 kW rooftop solar project at the College of Science and Technology, Phuentsholing, as a step towards Bhutan’s clean energy vision and strengthening solar energy capacity.

The Bhutanese and the Indian governments 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 termed the agreement as a new and important part of the relationship between the two countries, 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 several Indian private companies have already shown interest in Bhutan’s renewable energy sector and are investing in hydropower, solar, and energy storage projects.

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.

India also announced a line of credit of Rs 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.