New Delhi [India], September 6 (ANI): Adani Power, India’s largest private power producer, and Druk Green Power Corp. Ltd. (DGPC), Bhutan’s state-owned generation utility, signed the Shareholders Agreement (SHA) for setting up a 570 MW Wangchhu hydroelectric project in the Himalayan Kingdom of Bhutan.
An in-principle understanding on the Power Purchase Agreement (PPA) was also initialled. Most importantly, the developers also signed the Concession Agreement (CA) for the project with the Royal Government of Bhutan, the company said in a release.
These Agreements, signed in the presence of the Prime Minister of Bhutan, Dasho Tshering Tobgay and Gautam Adani, Chairman, Adani Group, pave the way for Adani Power and DGPC to initiate the implementation of the peaking run-of-river Wangchhu hydroelectric project on a BOOT (Build, Own, Operate, Transfer) model.
The Wangchhu project will see an investment of about Rs 60 billion in setting up the renewable energy power plant and related infrastructure. With the preparation of the detailed project report already completed, construction work is expected to begin by the first half of 2026, and the completion is 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 hydro power generation is low. During the summer months, it would export power to India,” said SB Khyalia, CEO, Adani Power.
“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,” said Dasho Chhewang Rinzin, MD, DGPC.
He added that 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. DGPC is therefore happy to be partnering with the Adani Group for establishing the 570 MW Wangchhu hydroelectric project. Considering their technical & financial strength and the immense experience and expertise that the Adani Group brings to the table, the project implementation is expected to be fast-tracked and set a benchmark for other such projects. The project, on completion, will not only help ensure Bhutan’s energy security but also help further strengthen grid connectivity between Bhutan and India,” said the DGPC MD.
The Wangchhu is the first hydroelectric project to be taken up under an MoU that was signed in May 2025 between the Adani Group and DGPC for jointly developing 5,000 MW of hydropower in Bhutan. Adani Group and DGPC are engaged in further discussions for future projects under this strategic partnership.
Adani Power (APL), a part of the Adani portfolio, is the largest private thermal power producer in India. The Company has an installed thermal power capacity of 18,110 MW spread across twelve power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, apart from a 40 MW solar power plant in Gujarat.
With the help of a world-class team of experts in every field of power, Adani Power is on course to achieve its growth potential.
The company is harnessing technology and innovation to transform India into a power-surplus nation and provide quality and affordable electricity for all.
DGPC is the sole generation utility of Bhutan with a current generation portfolio of a little over 2,500 MW and growing fast with Bhutan’s aspirations to achieve 25,000 MW in generation capacity by 2040. Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan, is DGPC’s shareholder.
Established in 2008 to take a lead role in developing Bhutan’s hydropower resources, it has recently diversified beyond hydropower into tapping solar resources also. Over the years, DGPC has invested in and built expertise in the water-to-wire energy business with established centers of excellences in critical areas and applied research and development capabilities. (ANI)
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