India-based Adani Power Ltd (BOM:533096) and Bhutan’s state-owned generation utility Druk Green Power Corp Ltd (DGPC) will partner on a 570-MW peaking run-of-river hydroelectric project in the Himalayan Kingdom of Bhutan.
The companies have signed a shareholders’ agreement (SHA) and have reached an in-principle understanding on a power purchase agreement (PPA) related to the project. Additionally, the project site has been secured under a concession contract with the Royal Government of Bhutan.
The Wangchhu hydroelectric project is estimated at INR 60 billion (USD 681m/EUR 579m), including the cost of the power plant and related infrastructure costs. It will be implemented on a build, own, operate, and transfer (BOOT) basis.
The detailed project report has already been completed. Construction works are expected to start by the first half of 2026 and be completed in about five years.
“The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro power generation is low. During the summer months, it would export power to India,” Adani Power’s CEO SB Khyalia said.
DGPC’s managing director Dasho Chhewang Rinzin, in turn, highlighted the role of reliable and affordable electricity from its renewable energy resources in enabling investments to drive its economic growth. He noted that Bhutan plans to add another 15,000 MW in hydropower and 5,000 MW in solar generation capacity by 2040.
RenewablesNow
