Adani Power, Druk Green Power To Jointly Develop Rs 6,000-Crore Hydroelectric Project In Bhutan

India's largest private power producer, Adani Power Ltd, and Bhutan's state-owned Druk Green Power Corp. have signed key agreements to develop a 570 MW hydroelectric project in a significant step towards deepening regional energy cooperation, as per a press release.

The shareholders agreement for the Wangchhu Hydroelectric Project was signed on Saturday, along with an initial understanding on the Power Purchase Agreement. The Concession Agreement for the project was also formalised with the Royal Government of Bhutan, added the release.

The agreements were signed in the presence of Bhutan's Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani, marking the formal initiation of the peaking run-of-river hydro project under a BOOT (Build, Own, Operate, Transfer) model.

The Wangchhu project represents a total investment of around Rs 6,000 crore and will involve the construction of a renewable energy plant and associated infrastructure. With the detailed project report already completed, construction is expected to begin by mid-2026, with project completion targeted within five years of groundbreaking.

"Bhutan is a role model for the world in sustainable development, and we are very excited to play a leading role in the development of the country's natural resources through this renewable energy project. The Wangchhu hydroelectric project will critically meet Bhutan's peak winter demand, when hydropower generation is low. During the summer months, it would export power to India," said SB Khyalia, the chief executive officer of Adani Power.

Dasho Chhewang Rinzin, the managing director of DGPC, emphasised the deep-rooted energy cooperation between Bhutan and India, dating back to the 1960s. "Bhutan and India have, since the 1960s, worked closely together to harness the huge hydropower potential that Bhutan is endowed with. This cooperation in hydropower has immensely benefited both countries and is considered the cornerstone of the exemplary and friendly relations that the two countries enjoy," he said.

Highlighting Bhutan's long-term energy ambitions, Rinzin added, "As Bhutan endeavours to become a high-income GNH (Gross National Happiness) country within the next decade, access to reliable and affordable electricity from its renewable energy resources such as hydropower and solar will be critical to enable other investments to drive its economic growth. Bhutan therefore plans to add another 15,000 MW in hydropower and 5,000 MW in solar generation capacity by 2040."

Rinzin noted that DGPC is pleased to partner with the Adani Group, given its technical and financial strength and extensive expertise in power development. "The project implementation is expected to be fast-tracked and set a benchmark for other such projects," he said. "The project, on completion, will not only help ensure Bhutan's energy security but also help further strengthen grid connectivity between Bhutan and India."

The Wangchhu project is the first to be undertaken under a Memorandum of Understanding signed in May 2025 between the Adani Group and DGPC to jointly develop 5,000 MW of hydropower in Bhutan. Discussions for future projects under this strategic partnership are already underway.