In a landmark move to bolster sustainable energy, Bhutan has inked a Memorandum of Understanding (MoU) with India’s Reliance Group during the Bhutan Innovation Forum. The agreement, signed between Druk Holding and Investments Ltd. (DHI) and Reliance Group, paves the way for the development of 1.2 gigawatts (GW) of renewable energy projects, encompassing 500 megawatts (MW) of solar power and 770 MW of hydropower, with investments reaching up to USD 1 billion.
Reliance Group, one of India’s foremost conglomerates, brings its extensive expertise in the energy sector to this partnership, particularly through its subsidiary, Reliance Power. The group boasts a formidable installed capacity of 5,340 MW, highlighted by the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh—the world’s largest integrated thermal power plant.
The MoU signing ceremony coincided with Gandhi Jayanti, commemorating the birth of Mahatma Gandhi, a seminal figure in India’s independence and a proponent of non-violence. Bhutan’s Prime Minister Dasho Tshering Tobgay, along with the Energy Minister, Secretary of the Energy Ministry, and other senior officials, attended the event. Anil Ambani, Chairman of Reliance Group, was also present, underscoring the significance of the collaboration.
Lyonchhen Tshering Tobgay, Prime Minister of Bhutan, remarked that the agreement marks the beginning of a transformative journey aimed at propelling Bhutan towards becoming a developed and prosperous nation through sustainable energy initiatives. “Reliance in Bhutan, alongside DHI, will drive growth and prosperity through green and renewable energy, advancing our solar and hydropower sectors,” he stated.
Highlighting the strategic economic ties, Lyonchhen Tobgay noted that over 80 percent of Bhutan’s trade across all sectors is with India. “In the renewable energy sector, India’s demand and market complement Bhutan’s vast production potential,” he added.
Anil Ambani echoed this sentiment, emphasizing the Reliance Group’s commitment to fostering Bhutan’s clean energy landscape. “We are establishing Reliance Enterprises, a new entity dedicated exclusively to investing in Bhutan’s renewable and green energy sector,” he announced. Jointly promoted by Reliance Infrastructure Ltd. and Reliance Power Ltd., Reliance Enterprises aims to enhance sustainable energy solutions nationwide.
The partnership’s flagship project, a 500 MW solar power plant in Gelephu Mindfulness City, will be developed in two phases of 250 MW each over the next two years. Upon completion, it will stand as Bhutan’s largest solar installation, significantly advancing the country’s efforts to generate clean energy and combat climate change. Land for the project has already been designated, and a specialized technical team is conducting site assessments and technical studies.
Additionally, Reliance Power Ltd. and DHI will collaborate on the 770 MW Chamkharchhu-1 hydropower project, a run-of-the-river initiative. This venture is particularly noteworthy given Bhutan’s current installed power generation capacity of 2,452 MW. In this joint endeavor, Reliance Power will hold a 49 percent stake, while DHI will maintain a majority ownership with a 51 percent share, operating under a concession model aligned with government policies.
Ujjwal Deep Dahal, CEO of DHI, underscored the pivotal role of the energy sector in Bhutan’s economy. “This partnership prioritizes green energy generation, particularly in solar and hydropower, and explores innovative green technologies,” he explained. Furthermore, Reliance Infrastructure Ltd. plans to collaborate with Bhutan’s government-owned entities to implement infrastructure projects supporting the nation’s net-zero goals, reinforcing its dedication to sustainable development.
The collaboration also marks one of the largest foreign direct investments (FDI) in Bhutan’s renewable energy sector, specifically within the Gelephu Mindfulness City Special Administrative Zone. Reliance Enterprises will introduce smart distribution and metering systems, ensuring efficient energy management and accessibility across Bhutan.
As Bhutan and Reliance Group embark on this ambitious partnership, the initiative is set to significantly enhance Bhutan’s energy security, stimulate economic and industrial growth, and strengthen regional cooperation in sustainable power generation. This collaboration not only positions Bhutan as a burgeoning hub for renewable energy in the region but also underscores the potential for public-private partnerships in driving environmental and economic progress.
