Could a Robust Partnership Between Adani Group and Bhutan’s Energy Sector Be on the Horizon?
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Synopsis
Gautam Adani's recent meeting with Bhutan's Prime Minister Tshering Tobgay marks a pivotal moment for energy cooperation between the two entities. This partnership aims to establish a significant hydroelectric project that could transform Bhutan's energy landscape.
Key Takeaways
- Partnership initiated between Adani Group and Bhutan's energy sector.
- 570 MW Wangchhu hydroelectric project signed, representing a milestone in energy cooperation.
- Investment of Rs 60 billion aimed at enhancing Bhutan's renewable energy capabilities.
- Construction expected to start in 2026, with completion targeted within five years.
- Supports Bhutan's aspirations of becoming a High Income GNH country.
Ahmedabad, Sep 6 (NationPress) Gautam Adani, the Chairman of the Adani Group, expressed his profound honor in meeting Bhutan's Prime Minister, Tshering Tobgay, on Saturday. This meeting marks the beginning of a promising partnership aimed at enhancing the energy sector in Bhutan.
Earlier that day, Adani Power and Druk Green Power Corp Ltd. (DGPC), Bhutan's state-owned utility, formalized their collaboration by signing the shareholders agreement (SHA) for the establishment of a 570 MW Wangchhu hydroelectric project in Bhutan.
“It was a great honor to meet with @PMBhutan @tsheringtobgay and establish the start of what I see as a very significant partnership between the Adani Group and Bhutan’s energy sector,” Gautam Adani remarked.
Prime Minister Tobgay also shared on X, “This evening, I joined in witnessing the signing of the 570 MW Wangchhu Hydropower Project agreement between Adani Power Ltd. and DGPC, a milestone in Bhutan–India clean energy cooperation.”
An initial understanding on the power purchase agreement (PPA) was also initiated, alongside the signing of the concession agreement (CA) for the project with the Royal Government of Bhutan.
This initiative allows Adani Power and DGPC to proceed with the implementation of the peaking run-of-river Wangchhu hydroelectric project under a BOOT (Build, Own, Operate, Transfer) model.
The Wangchhu project is set to attract an investment of approximately Rs 60 billion for the setup of the renewable energy power plant and associated infrastructure. With the detailed project report already completed, construction is anticipated to commence in the first half of 2026, targeting completion within five years of groundbreaking.
As Bhutan aspires to become a High Income GNH (Gross National Happiness) Country within the next decade, access to reliable and affordable electricity from its renewable resources like hydropower and solar will be essential for facilitating other investments that drive economic growth.
Additionally, Bhutan is optimistic about the upcoming Gelephu Mindfulness City (GMC) project, emphasizing its potential advantages for both Bhutan and India. Spanning over 2,500 square km, the GMC is a Special Administrative Region envisioned by King Jigme Khesar Namgyel Wangchuck, integrating economic development with mindfulness, holistic living, and sustainability.
Point of View
The partnership between the Adani Group and Bhutan's energy sector represents a critical step towards sustainable energy cooperation and economic growth, reinforcing the longstanding ties between India and Bhutan.
NationPress
06/09/2025
Frequently Asked Questions
What is the Wangchhu hydroelectric project?
The Wangchhu hydroelectric project is a 570 MW initiative being developed by Adani Power and DGPC in Bhutan, aimed at enhancing renewable energy generation.
What was signed during the meeting between Gautam Adani and Tshering Tobgay?
A shareholders agreement for the Wangchhu hydroelectric project and an initial understanding for the power purchase agreement (PPA) were signed.
How much is being invested in the Wangchhu project?
The project is set to attract an investment of approximately Rs 60 billion.
When is construction expected to begin?
Construction is anticipated to start in the first half of 2026, with a target for completion within five years of groundbreaking.
What is the significance of this partnership for Bhutan?
This partnership is crucial for Bhutan's goal of becoming a High Income GNH country, providing reliable electricity to fuel economic growth.
