Adani Power and Bhutan’s DGPC Sign Landmark Pact for 570 MW Wangchhu Hydroelectric Project

Ahmedabad, Sept 2025 :Adani Power and Druk Green Power Corporation Ltd. (DGPC), Bhutan’s state-owned generation utility, on Saturday signed a shareholders’ agreement (SHA) to jointly develop the 570 MW Wangchhu hydroelectric project in Bhutan. The signing also included an in-principle understanding on the power purchase agreement (PPA) and a concession agreement (CA) with the Royal Government of Bhutan.

The agreements were formalized in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani, underscoring the significance of the partnership.

The Wangchhu project will be developed on a Build, Own, Operate, and Transfer (BOOT) model, paving the way for both partners to initiate implementation. “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 natural resources through this renewable energy project,” said SB Khyalia, CEO of Adani Power.

Highlighting the project’s importance, Khyalia added that the Wangchhu hydroelectric facility will be vital in meeting Bhutan’s peak winter demand—when hydropower generation is typically low—while exporting surplus electricity to India during the summer months.

With an estimated investment of around ₹60 billion, the project will establish the renewable energy plant along with supporting infrastructure. Construction is expected to begin in the first half of 2026, with completion targeted within five years of groundbreaking. The detailed project report has already been prepared.

Dasho Chhewang Rinzin, Managing Director of DGPC, emphasized the long-standing energy cooperation between India and Bhutan: “Since the 1960s, both nations have worked closely to harness Bhutan’s immense hydropower potential. This partnership has benefited both countries and stands as the cornerstone of their exemplary bilateral relations.”

He noted that as Bhutan works toward its vision of becoming a “High-Income GNH (Gross National Happiness) Country” within the next decade, access to reliable and affordable renewable energy will be crucial to driving investments and economic growth. Bhutan has set ambitious targets of adding 15,000 MW of hydropower and 5,000 MW of solar capacity by 2040.

“DGPC is happy to partner with the Adani Group for the 570 MW Wangchhu project,” Rinzin said. “Considering the technical and financial strength, as well as the immense expertise that the Adani Group brings, we expect fast-tracked implementation that could set a benchmark for future projects.”

The Wangchhu venture is the first project under a memorandum of understanding signed in May 2025 between Adani Group and DGPC to jointly develop 5,000 MW of hydropower capacity in Bhutan. Both parties are currently in discussions to identify additional opportunities under this strategic partnership.

Adani Power, part of the diversified Adani portfolio, is India’s largest private thermal power producer with an installed capacity of 18,110 MW across twelve plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Jharkhand, and Madhya Pradesh. With its entry into Bhutan’s hydropower sector, the company is set to further strengthen its renewable energy footprint while reinforcing the long-standing energy partnership between India and Bhutan.

Team Maverick