Adani Power, India’s largest private thermal power producer, has announced a significant step into renewable energy with Bhutan’s state-owned Druk Green Power Corporation (DGPC). The two companies signed a pact to jointly develop the 570 MW Wangchhu hydroelectric project in Bhutan with an investment of around ₹6,000 crore. This strategic partnership not only strengthens India-Bhutan energy cooperation but also marks a new chapter in sustainable power generation in the Himalayan region.
Key Highlights of the Wangchhu Hydropower Project
- Capacity: 570 MW peaking run-of-river hydroelectric project
- Investment: ₹6,000 crore (approx. USD 720 million)
- Model: BOOT (Build, Own, Operate, Transfer)
- Agreements Signed: Power Purchase Agreement (PPA) & Concession Agreement
- Timeline: Construction to begin by the first half of 2026; targeted completion within 5 years
Strategic Importance of the Project
Meeting Bhutan’s Energy Needs
- The project will play a crucial role in meeting Bhutan’s peak winter demand, a period when hydropower output is traditionally low.
- During the summer, Bhutan will export surplus electricity to India, strengthening cross-border energy trade.
Strengthening Indo-Bhutan Energy Relations
- This is the first hydroelectric project under the MoU signed in May 2025 between Adani Group and DGPC to jointly develop 5,000 MW of hydropower capacity in Bhutan.
- Future collaborations between Adani Power and DGPC are expected, as both organizations expand their renewable energy footprint.
Statements from Leadership
According to SB Khyalia, CEO of Adani Power:
“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.”
The agreements were signed in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Gautam Adani, Chairman of Adani Group, reflecting the project’s high-level strategic importance.
About Adani Power and Druk Green Power
Adani Power
- Largest private thermal power producer in India
- Diversifying portfolio with investments in renewable and sustainable energy projects
- Part of Adani Group, a leading conglomerate with strong presence in infrastructure, energy, and logistics
Druk Green Power Corporation (DGPC)
- Sole generation utility of Bhutan, with a portfolio exceeding 2,500 MW
- Owned by Druk Holding & Investments, the commercial arm of Bhutan’s Royal Government
- Aims to expand Bhutan’s power generation capacity to 25,000 MW by 2040
- Actively exploring solar energy in addition to hydropower
Impact on Stock Market & Investors
- Adani Power shares may witness renewed investor interest, given the company’s diversification into international renewable energy projects.
- The deal highlights the long-term growth potential in the hydropower sector, especially in cross-border energy trade with Bhutan.
- Investors may monitor this project as part of Adani Group’s broader sustainability and expansion strategy.
Conclusion
The ₹6,000 crore Wangchhu hydropower project marks a milestone in Bhutan’s renewable energy journey and reinforces Adani Power’s commitment to clean energy development. With construction set to begin in 2026, the project will not only secure Bhutan’s domestic energy requirements but also boost India-Bhutan energy cooperation. For investors, this move signals Adani Power’s growing focus on sustainable infrastructure and international collaborations, which could shape its long-term valuation and growth trajectory.
