Ahmedabad, Sep 6 (NationPress) Adani Power and Druk Green Power Corp Ltd. (DGPC), the state-owned electricity generation entity in Bhutan, officially entered into a shareholders agreement (SHA) on Saturday to establish a 570 MW Wangchhu hydroelectric project in Bhutan.

An initial understanding regarding the Power Purchase Agreement (PPA) was also reached, alongside the signing of the concession agreement (CA) with the Royal Government of Bhutan.

This significant event took place in the presence of Bhutan Prime Minister Dasho Tshering Tobgay and Gautam Adani, the Chairman of the Adani Group.

This collaboration sets the stage for Adani Power and DGPC to commence the implementation of the peaking run-of-river Wangchhu hydroelectric project on a BOOT (Build, Own, Operate, Transfer) basis.

“Bhutan serves as a global exemplar in sustainable development, and we are thrilled to lead the charge in harnessing the nation's natural resources through this renewable energy initiative. The Wangchhu hydroelectric project will play a crucial role in meeting Bhutan's peak winter energy demands, particularly when hydro power generation is at its lowest. During the summer months, it will also facilitate power exports to India,” stated SB Khyalia, CEO of Adani Power.

The Wangchhu project will involve an investment of approximately Rs 60 billion for the establishment of the renewable energy power plant and its associated infrastructures.

With the detailed project report already finalized, construction is anticipated to commence in the first half of 2026, aiming for completion within five years from the groundbreaking.

“Since the 1960s, Bhutan and India have collaborated closely to tap into the vast hydropower potential that Bhutan possesses. This partnership in hydropower has substantially benefited both nations and is regarded as the foundation of the strong and amicable relations enjoyed by the two countries,” remarked Dasho Chhewang Rinzin, MD of DGPC.

As Bhutan aspires to transition into a High Income GNH (Gross National Happiness) Country within the next decade, access to reliable and affordable electricity generated from renewable resources like hydropower and solar energy will be vital to spur further investments and bolster economic growth.

Consequently, Bhutan aims to augment its hydropower capacity by an additional 15,000 MW and 5,000 MW in solar energy generation by 2040.

“DGPC is delighted to partner with the Adani Group for the establishment of the 570 MW Wangchhu hydroelectric project. Given their technological and financial prowess, combined with their vast experience and expertise, we expect the project to be fast-tracked and set a standard for future endeavors,” Rinzin added.

The Wangchhu project marks the first hydroelectric initiative undertaken under a Memorandum of Understanding (MoU) signed in May 2025 between the Adani Group and DGPC to jointly develop 5,000 MW of hydropower in Bhutan.

Ongoing discussions are underway between Adani Group and DGPC for prospective future projects as part of this strategic alliance.

Adani Power, a key player in the Adani portfolio, holds the title of the largest private thermal power producer in India, with a total installed thermal power capacity of 18,110 MW distributed across twelve power plants in Gujarat.