Adani Power, Druk Green Power sign 770 MW Chamkharchhu-I hydropower deal in Bhutan
Synopsis
Adani Power and Bhutan's state-owned DGPC have inked a deal for the 770 MW Chamkharchhu-I Hydroelectric Project — the second collaboration under their 5,000 MW MoU — with a 49:51 BOOT structure, a 30-year concession, and construction slated to begin in 2027. It is one of the largest private-sector cross-border clean energy deals in South Asia's recent history.
Key Takeaways
Adani Power and DGPC signed an agreement on 6 October 2026 to develop the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan's Zhemgang District .
The project is the second major collaboration under a 5,000 MW hydropower MoU signed between the Adani Group and DGPC in May 2025 , following the 570 MW Wangchhu project agreed in September 2025 .
It will be implemented on a BOOT model with a 49:51 equity split (Adani Power : DGPC) and a 30-year concession from COD.
Construction is expected to begin in the first half of 2027 , with commissioning targeted six years from groundbreaking.
The plant will address Bhutan's winter power needs and enable export of surplus green energy to India during summer months.
Bhutan's Prime Minister Lyonchen Dasho Tshering Tobgay attended the signing ceremony along with senior ministers and energy officials.
Adani Power and Druk Green Power Corporation (DGPC), Bhutan's state-owned power generation utility, on Tuesday, 6 October 2026, formally announced an agreement to develop the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan's Zhemgang District. The deal marks a significant step forward in India-Bhutan energy cooperation and expands what is shaping up to be one of the largest bilateral clean-energy partnerships in South Asia.
Second Major Project Under a Broader 5,000 MW Framework
The Chamkharchhu-I project is the second major hydropower initiative between the two partners. It follows the 570 MW Wangchhu Hydroelectric Project agreement signed in September 2025, and forms part of a broader 5,000 MW hydropower development MoU signed between the Adani Group and DGPC in May 2025. The two projects together account for 1,340 MW of the overall target.
The signing ceremony was held in the presence of Prime Minister of Bhutan Lyonchen Dasho Tshering Tobgay, along with Bhutan's Minister of Finance and Minister of Energy and Natural Resources. Representatives from Druk Holding & Investments Limited (DHI), Bhutan Power Corporation Limited (BPC), the DGPC Board and management, and Adani Power were also in attendance.
Project Structure and Implementation Timeline
The project, located on the Chamkarchhu River in central Bhutan's Zhemgang District, will be implemented under a Build, Own, Operate and Transfer (BOOT) model. Equity ownership is structured at a 49:51 partnership between Adani Power and DGPC respectively, with a 30-year concession from the Commercial Operations Date (COD). Construction is expected to commence in the first half of 2027, with commissioning targeted approximately six years from groundbreaking.
What the Project Delivers for Bhutan and India
According to the announcement, the project is designed to address Bhutan's peak winter electricity requirements — a persistent energy challenge for the landlocked Himalayan nation, where hydrology drops sharply in colder months. During summer, surplus green power generated by the plant would be exported to India, creating long-term commercial value for both countries.
Anil Sardana, Managing Director of Adani Power Ltd, said the partnership reinforces South Asia's clean energy transition. 'We are delighted to strengthen our partnership with the Royal Government of Bhutan and DGPC through the Chamkharchhu Hydroelectric Project. Hydropower will play a pivotal role in accelerating South Asia's energy transition, and this project will contribute significantly to enhancing energy security, reducing carbon intensity, and advancing shared sustainability goals,' Sardana said.
Dasho Chhewang Rinzin, Managing Director of DGPC, called the agreement a milestone in Bhutan's hydropower journey. 'This partnership marks another significant milestone in Bhutan's hydropower development journey and further strengthens the long-standing energy partnership between Bhutan and India,' Rinzin said, adding that DGPC looks forward to 'advancing further opportunities under the broader hydropower development partnership.'
Regional Energy Cooperation in Focus
This is the Nth such milestone in an accelerating pattern of India-Bhutan energy integration. Bhutan has historically exported the bulk of its hydropower to India under bilateral government-to-government frameworks, but private-sector participation — particularly at this scale — is a relatively new dimension. The involvement of the Adani Group as a private developer, alongside a state-owned Bhutanese utility under a BOOT structure, signals a shift in how bilateral energy infrastructure is being financed and delivered.
The project is expected to contribute to both nations' renewable energy commitments at a time when India is targeting 500 GW of non-fossil fuel capacity by 2030. With construction set to begin in 2027, the commissioning timeline extends well into the next decade, making regulatory continuity and diplomatic stability key variables to watch.
Point of View
000 MW MoU, now yielding its second concrete project in just over a year, suggests genuine execution momentum rather than framework diplomacy. Yet the BOOT structure, with a 30-year concession and a six-year construction window, means the real test is a decade away. Bhutan's dependence on Indian off-take prices and India's own grid absorption capacity will determine whether these projects deliver the 'long-term value for both nations' that both sides are promising. The structural shift from government-to-government to private-led delivery also carries regulatory risk that has not yet been fully interrogated in public discourse.
NationPress
6 Oct 2026
Frequently Asked Questions
What is the Chamkharchhu-I Hydroelectric Project?
The Chamkharchhu-I Hydroelectric Project is a 770 MW run-of-river hydropower plant to be built on the Chamkarchhu River in Bhutan's Zhemgang District. It is being developed jointly by Adani Power and Bhutan's state-owned DGPC under a 49:51 BOOT arrangement with a 30-year concession.
How does this project relate to the broader Adani-DGPC partnership?
It is the second major project under a 5,000 MW hydropower development MoU signed between the Adani Group and DGPC in May 2025. The first was the 570 MW Wangchhu Hydroelectric Project, agreed in September 2025. Together, the two projects account for 1,340 MW of the 5,000 MW target.
When will construction begin and when is commissioning expected?
Construction is expected to commence in the first half of 2027, with commissioning targeted approximately six years from the groundbreaking date, placing full operations in the early 2030s.
How will the project benefit India and Bhutan?
The project will help meet Bhutan's peak winter electricity demand while enabling export of surplus clean energy to India during the summer months. For India, it adds to cross-border renewable supply at a time when the country is targeting 500 GW of non-fossil fuel capacity by 2030.
Who attended the signing ceremony?
The signing was attended by Bhutan's Prime Minister Lyonchen Dasho Tshering Tobgay, along with the Minister of Finance, the Minister of Energy and Natural Resources, and representatives from DHI, BPC, the DGPC Board and management, and Adani Power.
