Reliance Power and DHI Ink Landmark ₹2,000 Crore Deal for Bhutan’s Largest 500 MW Solar Project

Image Source: Startup Rise Asia

Reliance Power Limited, belonging to the Anil Ambani-controlled Reliance Group, has partnered with Bhutan's Druk Holding and Investments (DHI) to undertake Bhutan's biggest solar power project—a 500 MW project—via a ₹2,000 crore (around USD 235 million) joint venture. The achievement is the biggest private sector foreign direct investment (FDI) so far in Bhutan's solar industry and promises to be a game-changer for renewable energy cooperation in South Asia.

Key Highlights:

The 500 MW solar project will be implemented on a Build-Own-Operate (BOO) basis through a joint venture between Reliance Power and DHI, the investment company of the Royal Government of Bhutan, on a 50:50 basis.

Reliance Power has entered into a long-term Power Purchase Agreement (PPA) with Green Digital Private Limited, a subsidiary of DHI, for assured off-take of electricity produced from the project.

The project will be executed in tranches phased over 24 months, substantially increasing Bhutan's solar generation capacity and adding diversity to its renewable energy base, dominated as it is by hydropower.

Reliance Power has commenced the tendering for Engineering, Procurement, and Construction (EPC) on international competitive bidding basis to ensure cost effectiveness and technical excellence.

The company is also approaching top financial institutions to arrange sustainable, long-tenor project financing, maximizing capital structure and overall efficiency.

This move is a follow-up of a larger strategic alliance signed in October 2024 between Reliance Enterprises (a JV of Reliance Power and Reliance Infrastructure) and DHI for the development and operation of the 770 MW Chamkharchhu-I hydel project.

The project will be a turning point for promoting regional clean energy integration, deepening India-Bhutan economic ties, and promoting cross-border infrastructure cooperation in South Asia.

The clean energy pipeline of Reliance Power currently consists of 2.5 GWp of solar and more than 2.5 GWh of battery energy storage, which is India's largest integrated Solar + BESS player.

This historic agreement not only solidifies Reliance Power's global renewable presence but also joins Bhutan's vision for inclusive development and leadership in the region's energy.

Source: Business Standard, Outlook Business, Times of India, Financial Express, KNN India, PV Magazine India, DSIJ, Evertiq