Adani Power and Druk Green Power Corporation Ltd (DGPC), Bhutan’s state-owned generation utility, signed a shareholders agreement (SHA) on Saturday to set up the 570 MW Wangchhu hydroelectric project in Bhutan.
The two sides also initialled an in-principle understanding on the power purchase agreement (PPA) and signed a concession agreement (CA) with the Royal Government of Bhutan.
The agreements were signed in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani.
Project to Meet Power Demand in Bhutan
The Wangchhu project will operate on a BOOT (Build, Own, Operate, Transfer) model as a peaking run-of-river hydroelectric plant.
SB Khyalia, CEO of Adani Power, said the project will play a critical role in addressing Bhutan’s peak winter power demand and enable power exports to India during the summer.
“Bhutan is a role model for the world in sustainable development, and we are excited to play a leading role in developing the country’s renewable energy resources,” Khyalia said.
Adani Power and DGPC plan to invest about ₹60 billion in building the renewable power plant and related infrastructure. The developers plan to start construction in early 2026 and complete it within five years.
Bhutan’s Energy Ambitions
Dasho Chhewang Rinzin, MD of DGPC, noted that Bhutan and India have cooperated in hydropower since the 1960s. He said hydropower development remains a cornerstone of bilateral relations.
Bhutan plans to become a High-Income GNH country and add 20,000 MW of renewable energy by 2040.
“DGPC is happy to partner with the Adani Group, whose technical expertise and financial strength will help fast-track the Wangchhu project and set a benchmark for future initiatives,” Rinzin added
The Wangchhu project is the first under the May 2025 MoU between Adani Group and DGPC. Both sides are already discussing additional projects under this strategic collaboration.
Adani Power, India’s largest private thermal producer, operates 18,110 MW across 12 plants in Gujarat and other states.
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