In a landmark development for Bhutan’s renewable energy ambitions, Adani Power and the Druk Green Power Corporation (DGPC) have signed an agreement to construct the 570-megawatt Wangchhu hydroelectric project. The venture marks the beginning of a long-term strategic partnership between the two energy giants aimed at jointly developing 5,000 MW of hydropower capacity in the Himalayan kingdom.
The Wangchhu project will operate as a peaking run-of-river facility, designed to meet Bhutan’s growing winter electricity demand while exporting surplus power to India during the summer months. Under the terms of the agreement, DGPC will hold a 51% majority stake, with Adani Power owning the remaining 49%. The concession period for the project is set at 30 years.
Construction is scheduled to commence in the first half of 2026, with completion expected within five years. The estimated investment stands at INR 60 billion, financed entirely through project loans without any sovereign guarantees. This financing model underscores Bhutan’s intent to attract large-scale private investment into its clean energy sector.
The initiative is part of Bhutan’s ambitious plan to add 15,000 MW of hydropower and 5,000 MW of solar capacity by 2040. The expansion is a cornerstone of the nation’s strategy to transition into a high-income economy while capitalizing on its abundant renewable resources.
Industry experts see the Wangchhu project as not only a boost to Bhutan’s energy security but also a key step toward deepening cross-border energy trade with India. With the country’s vast untapped hydropower potential, the partnership between DGPC and Adani Power could set the stage for further transformative developments in the region’s energy landscape.
