Energy in Bhutan has been a primary focus of development in the kingdom under its Five-Year Plans. In cooperation with India, Bhutan has undertaken several hydroelectric projects whose output is traded between the countries. Though Bhutan’s many hydroelectric plants provide energy far in excess of its needs in the summer, dry winters and increased fuel demand makes the kingdom a marginal net importer of energy from India.

As of 2011, the Bhutanese government supplied electricity to 60 percent of rural households, a significant increase from about 20 percent in 2003. About 2,500 people used solar power throughout Bhutan. Even where electricity was available for lighting, most rural households cooked by wood fire. Rural homes were often heated with firewood, kerosene, or liquefied petroleum gas.