Adani Power and Bhutan’s state-owned generation utility, Druk Green Power (DGPC), on Saturday signed an agreement to set up a 570 MW Wangchhu hydroelectric project in the Himalayan kingdom of Bhutan.
The Wangchhu project will see an investment of about Rs 6,000 crore in setting up the renewable energy power plant and related infrastructures.
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An in principle understanding on the power purchase agreement (PPA) was also initiated. The developers also signed the concession agreement (CA) for the project with the government of Bhutan.
The agreements, signed in the presence of Bhutan Prime Minister Dasho Tshering Tobgay and Adani group chairman Gautam Adani, will 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, a release from Adani Group said.
Construction timeline and investment
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, the release said.
DGPC in November last year tied up with Tata Power for the development of 5,000 MW of clean energy capacity in the Himalayan nation.
Role in Bhutan’s energy future
“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.
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“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. 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 Dasho Chhewang Rinzin, MD, DGPC.
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