Adani Power And Druk Green Power Corporation Sign MOU To Build A 570MW Hydropower Project In Bhutan

Adani Power And Druk Green Power Corporation Sign MOU To Build A 570MW Hydropower Project In Bhutan

Adani Power has signed a Memorandum of Understanding (MOU) with Bhutan's state-owned utility, Druk Green Power Corporation (DGPC), to jointly develop a 570 MW hydroelectric project in Bhutan. This agreement is a significant step in the long-standing energy cooperation between India and Bhutan.

Here are the key details and strategic implications of the deal:

Project Details
Project Name: The Wangchhu hydroelectric project, a peaking run-of-river project.

Capacity: 570 MW, with a projected investment of around ₹6,000 crore.

Model: The project will be executed on a Build, Own, Operate, Transfer (BOOT) model. This means Adani and Druk Green will build and operate the plant for a set period before transferring ownership to the Royal Government of Bhutan.

Timeline: With the detailed project report already completed, construction is expected to begin in the first half of 2026, with a targeted completion within five years.

Location: The project is planned on the Wangchhu river in Bhutan.

Strategic Significance
This collaboration is a major milestone for both countries, serving several strategic purposes:

For Bhutan: The project will enhance Bhutan's energy security by providing a critical source of power, especially during the peak winter months when hydropower generation is typically low. The surplus electricity generated during the summer will be exported to India, providing a significant revenue stream for the country.

For India: The project will further strengthen India's energy grid and provide a reliable supply of clean, renewable energy. Hydropower is a key component of India's green energy transition, and this project reinforces its commitment to sourcing clean power from its neighbors.

Deepening Bilateral Ties: The deal is a testament to the long-standing and mutually beneficial hydropower cooperation between India and Bhutan. It is the first project to be taken up under a broader MOU signed in May 2025, which aims to develop 5,000 MW of hydropower in Bhutan. The deal was signed in the presence of Bhutanese Prime Minister Tshering Tobgay and Adani Group Chairman Gautam Adani, underscoring its strategic importance.

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