Ahmedabad, September 6, 2025|SKY LINK TIMES
In a landmark renewable energy partnership, Adani Power and Druk Green Power Corporation Ltd. (DGPC), Bhutan’s state-owned utility, have signed agreements to jointly develop the 570 MW Wangchhu hydroelectric project in Bhutan.
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The agreements, which include a shareholders agreement (SHA), power purchase agreement (PPA), and concession agreement (CA) with the Royal Government of Bhutan, were signed in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Gautam Adani, Chairman of the Adani Group.
Investment and Project Model
The Wangchhu project will involve an estimated ₹60 billion investment and will be developed on a BOOT (Build, Own, Operate, Transfer) model. With its peaking run-of-river design, the hydro plant will address Bhutan’s critical winter energy demand when hydropower generation usually dips. During the summer months, the project will export surplus power to India.
SB Khyalia, CEO of Adani Power, noted:
> “Bhutan is a role model for the world in sustainable development, and we are very excited to play a leading role in developing its natural resources. The Wangchhu project will critically meet Bhutan’s peak winter demand while enabling power exports to India in summer.”
Strategic Importance for Bhutan-India Ties
Hydropower cooperation has been the cornerstone of Bhutan–India relations since the 1960s. Dasho Chhewang Rinzin, MD of DGPC, emphasized that this collaboration with Adani Power marks a new chapter in the long-standing energy partnership.
Rinzin said:
> “DGPC is happy to be partnering with the Adani Group for establishing the Wangchhu project. Considering their technical and financial strength, we expect fast-tracked implementation that will set a benchmark for other projects.”
Bhutan’s long-term energy plan includes adding 15,000 MW of hydropower and 5,000 MW of solar capacity by 2040, underscoring the critical role of projects like Wangchhu in driving the nation’s sustainable growth.
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Timeline and Future Prospects
With the detailed project report (DPR) already completed, construction of the Wangchhu plant is expected to commence in the first half of 2026, with completion targeted within five years.
The Wangchhu initiative is also the first hydroelectric project under the May 2025 MoU between AP Group and DGPC to jointly develop 5,000 MW of hydropower in Bhutan. Both sides are already in talks for future projects under this strategic alliance.
Adani Power’s Growing Energy Portfolio
Adani Power, India’s largest private thermal power producer with an installed capacity of 18,110 MW across 12 plants, is steadily diversifying into renewable energy. The Bhutan project highlights the group’s commitment to clean energy while also strengthening India’s cross-border power cooperation.
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