Bhutan has taken another significant step towards expanding its renewable energy capacity with the signing of a Shareholders’ Agreement for the joint development of the 920 MW Punatsangchhu-III Hydroelectric Project.
The agreement was signed between Druk Green Power Corporation Limited (DGPC), Bhutan’s state-owned power company, and JSW Neo Energy Limited, marking a further strengthening of Bhutan’s energy cooperation with India’s private sector. The signing ceremony was graced by the Prime Minister.
Dasho Chhewang Rinzin, Managing Director of DGPC, signed the agreement on behalf of the Bhutanese power utility, while Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, represented JSW Neo Energy Limited.
The proposed 920 MW project is expected to add substantially to Bhutan’s hydropower generation capacity and support the country’s efforts to make greater use of its abundant renewable energy resources.
The partnership also reflects an evolving dimension of the longstanding energy relationship between Bhutan and India, with Indian private-sector participation increasingly complementing the extensive cooperation between the two countries in the hydropower sector.
Once developed, Punatsangchhu-III is expected to contribute to greater energy security while supporting sustainable economic growth and cross-border energy cooperation. The project is also aligned with the wider objective of expanding clean and renewable power generation at a time when both countries are placing greater emphasis on energy transition and long-term energy resilience.
For Bhutan, the collaboration offers another avenue to translate its considerable hydropower potential into economic opportunities and sustainable development. For India, access to additional renewable power from Bhutan can complement its growing clean-energy requirements.
The agreement therefore represents more than the development of a single hydropower project. It signals a broader effort to build on the close Bhutan-India energy partnership through new investment models and institutional collaboration, with the benefits expected to extend to both economies.
