Did Bhutan Just Secure a Major Deal with the Adani Group for 5,000 MW Hydropower Projects?

Thimphu, May 8 (NationPress) The Adani Group and the Druk Green Power Corporation (DGPC) of Bhutan have entered into a groundbreaking Memorandum of Understanding (MoU) to collaboratively develop 5,000 MW of hydropower projects in Bhutan.

The agreement was formalized by DGPC’s Managing Director Dasho Chhewang Rinzin and Adani Green Hydro Ltd’s Chief Operating Officer, PSP & Hydro, Naresh Telgu, in the presence of Prime Minister Dasho Tshering Tobgay, Minister for Energy and Natural Resources Lyonpo Gem Tshering, and other high-ranking officials.

This MoU builds on the existing partnership for the 570/900 MW Wangchhu Hydropower Project, where the DGPC will maintain a 51 percent majority stake, while the Adani Group will hold 49 percent. The broader 5,000 MW initiative will include additional hydropower and pumped storage projects, to be identified and implemented in phases through detailed project reports.

"This collaboration demonstrates our strong commitment to developing clean energy infrastructure that boosts regional energy security," stated Adani Green Hydro Ltd's COO, PSP & Hydro, Telgu. "Together with the DGPC, we are enabling Bhutan to tap into its hydropower potential and export dependable green energy to India. This is a remarkable instance of cross-border cooperation aimed at achieving shared sustainable development objectives."

DGPC MD Rinzin remarked, "This strategic alliance with Adani will further enhance our solid engagement with the Government of India in leveraging Bhutan’s abundant hydropower resources, which underpins the exemplary and amicable relations between our two nations. We eagerly anticipate advancing this partnership with Adani and gaining insights from their extensive global successes."

The DGPC, recognized as Bhutan’s leading hydropower developer, has extensive experience in managing the nation’s renewable energy resources. It plays a crucial role in Bhutan’s clean energy journey, ensuring both domestic energy security and sustainable development. Through such collaborations, the DGPC is enhancing Bhutan’s position in regional energy cooperation.

On the other hand, the Adani Group, known as India’s foremost infrastructure and renewable energy player, brings vast expertise in project development, financing, and market access. It aims to assist Bhutan in increasing its hydropower capacity while facilitating entry into Indian energy markets.

As part of this partnership, the Adani Group will assure reliable power offtake and integration with India’s commercial power markets, further solidifying Bhutan’s role in regional energy trading. This collaboration is robustly supported by both the Bhutan and Indian governments, highlighting a united vision for clean energy advancement and economic integration.

This initiative is also in line with Bhutan’s Renewable Energy Roadmap, which aims to achieve an additional 20,000 MW of generation capacity by 2040. The roadmap emphasizes diversification into solar and geothermal energy, while also encouraging strategic partnerships to attract investments and foster innovation.

In a further significant step, the DGPC and the Adani Group also initialed the Shareholders’ Agreement for the Wangchhu Project, marking vital progress in their joint efforts to advance Bhutan’s hydropower sector.