India Bhutan Power Agreement
Most of Chukha`s energy is exported to West Bengal, Bihar, Jharkhand, Orissa and Sikkim. Chukha was the kingdom`s largest source of income until the Tala Hydropower project was commissioned in 2007. Between 2005 and 2006, chukha alone contributed more than 30% of Bhutan`s total sales.   The facility is operated by Druk Green. Other sources of energy were the biogas used in some districts for lighting and cooking, mainly from cow manure. Solar energy has been used for many purposes, including heating homes and greenhouses and lighting hospitals. Despite the potential solar energy that could be produced, Bhutan`s mountainous terrain prevents maximum use. However, these same mountains are funnels for high winds and provide another viable renewable energy source. In 1987, windmills were installed in Wangude Phodrang to generate electricity for irrigation pumps.
 The Sixth Five-Year Plan (1987-1992) was the first to give a significant share of the state budget to energy production projects (13.1%). At $9.5 billion, the sixth plan was significantly more expensive than its predecessors. Among the objectives was to strengthen Bhutan`s autonomy, as it was hoped that Bhutan would begin to use markets in neighbouring countries with production, mining and hydropower projects. As a result of rising costs, Bhutan has postponed some projects requiring high capital requirements until the seventh development plan (1992-1996), which has not resulted in significant changes in the overall sectoral evolution.  “The hydroelectric sector was the most visible symbol of mutually beneficial bilateral cooperation between our two countries,” Jaishankar said at the signing ceremony between JV partners Sutlej Jal Vidyut Nigam (SJVN), a HIMachal Pradesh PSU, and the Bhutanese Druk Green Power Corporation (DGPC). “I congratulate the two JV partners on this remarkable performance and hope that they have spared no effort to complete the project quickly,” he said. Bhutan`s installed hydroelectric capacity will be 1,615 megawatts from 2016, representing an estimated hydroelectric potential of 30,000 megawatts (of which 23,760, technologically and economically feasible).   Hydroelectric production decreases considerably in winter as mountain streams freeze.  Hydroelectric power with the grid is the country`s main source of energy.  The Chukha Hydropower Project, or Chukha Hydel, was Bhutan`s first megapower project. Construction began in the 1970s with commissioning in 1986 and the government took full control in 1991. In summer, the plant produces 336 MW from four turbines in the Wangchhu River in the central Chukha district between Thimphu and Phuentsholing.