Energy Democracy: A Case Study of Bhutan

When energy projects are exclusionary in nature, they are bound to fail because they lack a sense of collective belonging and ownership. The energy transition in small states necessitates a multi-dimensional approach that addresses various aspects, including policy, regulatory frameworks, financial mechanisms, infrastructure development, and stakeholder engagement for sustainable energy transitions. Bhutan’s pursuit of carbon-negative commitment and universal energy access faces critical challenges. Ninety percent of Bhutan’s electricity comes from hydropower plants, which remain centralised and export-oriented in nature. The strong environmental commitment to keep 60% of forest cover places barriers in the distribution of the national grid in all edges and corners of Bhutan. While the remote communities nested within or adjacent to conservation areas are custodians of Bhutan’s ecological wealth, simultaneously, they remain energy poor due to the incompatibility between centralised grid infrastructure and strong conservation policies. To address this gap, Bhutan has adopted the framework of energy democracy for sustainable energy transition. This concept focuses on community participation, decentralisation, and local ownership. It reduces the risk of reproducing historical inequalities that exclude marginalised communities from the benefits of a clean energy future. It takes the case of Aja Ney’s decentralised solar farm to illustrate how it has addressed the local needs, aligning with the national vision of just energy transition. The case of Bhutan has helped us to understand that the geographical remoteness and strong environmental commitment have been the main forces behind the practice of energy democracy in the case of Bhutan. The chapter also acknowledges challenges faced in the process of adopting the framework of energy democracy in the case of Bhutan.