Promotion of Renewable Energy and Energy Efficient Technologies in the Building Sector - Final Phase

Contract partner: GNHC / RGoB - Gross National Happiness Commission - Royal Government of BhutanCountry: Bhutan Funding amount: € 1.100.000,00Project start: 01.07.2020End: 30.06.2023

Short Description:

Overall goal

The expected impact of the project is wider adoption of renewable energy and energy efficiency through demonstration and promotion of solar thermal systems to the wider public and industry

Expected results

Outcome 1: Contribution to the generation of 3 MegaWatt (MW) equivalent of energy from solar thermal systems by year 2025.

Outcome 2: Application and testing of green and energy efficient measures in existing buildings based on the products, standards and capacity built [during Phase I (2017 – 2019)] towards the promotion of green and energy efficient buildings.


Target group / Beneficiaries

Beneficiaries: 20 policy/ decision makers of Ministry of Economic Affairs, Ministry of Works & Human Settlement and the Gross National Happiness Commission;

155 technical professionals from the implementing agencies, contractors, plumbers and suppliers;

53 beneficiaries of solar water heating systems [33 public institutions, 10 residential (domestic households), and 10 commercial]; and 60 faculty lecturers and students of technical training institutes and colleges.

The Gross National Happiness Commission (GNHC) is the contractual partner while the overall project coordination and the management will be vested in the Department of Renewable Energy (DRE) under the Ministry of Economic Affairs (MoEA) in collaboration with the Department of Engineering Services (DES) under the Ministry of Works & Human Settlement (MoWHS).


Develop a cost-effective subsidy scheme for Solar Water Heating (SWH) installations;

Commission 53 SWH schemes targeting 10 residential, 10 commercial buildings and 33 institutions;

Increase awareness on SWH technology with 4 outreach and awareness interventions;

Strengthen institutional capacity on SWH technology.

Retrofit 1 existing public building with energy efficiency (EE) measures;

Developed guidelines and standards for EE buildings;

Enhance capacity for EE Building Technologies;

Increase awareness on EE buildings.


Concern over energy security, the economic impacts of high energy consumption, and growing awareness of climate change have led Bhutan to put greater emphasis on developing policies and measures that promote renewable energy and energy efficiency. The overall development objective of this Project is to contribute to achieving the National Key Result Area (NKRA) 6, which aims to enhance a Carbon Neutral, Climate and Disaster Resilient Development in Bhutan during the 12th Five Year Plan (FYP) (2018 – 2023).

project number2791-00/2020
source of fundingOEZA
sector Energiegewinnung, -Verteilung und -Effizienz, allgemein
modalityProject-type interventions
marker Environment: 2, Climate change mitigation: 2
  • Policy marker: are used to identify, assess and facilitate the monitoring of activities in support of policy objectives concerning gender equality, aid to environment, participatory development/good governance, trade development and reproductive, maternal, newborn and child health. Activities targeting the objectives of the Rio Conventions include the identification of biodiversity, climate change mitigation, climate change adaptation, and desertification.
    • 1= policy is a significant objective of the activity
    • 2= policy is the principal objective of the activity
  • Donor/ source of funding: The ADA is not only implementing projects and programmes of the Austrian Development Cooperation , but also projects funded from other sources and donors such as
    • AKF - Foreign Disaster Fund of the Austrian federal government
    • BMLFUW - Federal Ministry for Agriculture, Forestry, Environment and Water
    • EU - Funds of the European Commission
    • Others - various other donors are listed in ADA’s annual business report.
  • Type of Aid – Aid modalities: classifies transfers from the donor to the first recipient of funds such as budget support, core contributions and pooled programmes and funds to CSOs and multilateral organisations, project-type interventions, experts and other technical assistance, scholarships and student costs in donor countries, debt relief, administrative costs and other in-donor expenditures.
  • Purpose/ sector code: classifies the specific area of the recipient’s economic or social structure, funded by a bilateral contribution.
  • Tied/Untied: Untied aid is defined as loans and grants whose proceeds are fully and freely available to finance procurement from all OECD countries and substantially all developing countries. Transactions are considered tied unless the donor has, at the time of the aid offer, clearly specified a range of countries eligible for procurement which meets the tests for “untied” aid.