India’s Adani Power and Bhutan’s Druk Green Power Corporation (DGPC) have signed a landmark agreement to develop the 570 MW Wangchhu Hydroelectric Project in Bhutan as announced on September 5, 2025. This strategic alliance, marked by the presence of Bhutan Prime Minister Tshering Tob...
India’s Adani Power and Bhutan’s Druk Green Power Corporation (DGPC) have signed a landmark agreement to develop the 570 MW Wangchhu Hydroelectric Project in Bhutan as announced on September 5, 2025. This strategic alliance, marked by the presence of Bhutan Prime Minister Tshering Tobgay and Adani Group Chairman Gautam Adani, represents a significant advancement in cross-border clean energy partnerships and regional energy security.
Key Developments and Agreement Structure
Adani Power and DGPC signed a shareholders agreement (SHA) for the project in Ahmedabad, alongside an in-principle power purchase agreement (PPA) and a concession agreement (CA) with the Royal Government of Bhutan.
The Wangchhu Hydroelectric Project will follow a BOOT (Build, Own, Operate, Transfer) model, paving the way for accelerated project development and future public-private collaborations in the region.
Project Features and Strategic Impact
The plant will be a peaking run-of-river hydro development, engineered to meet Bhutan’s peak winter electricity demand when generation dips, while surplus summer energy will be exported to India, reinforcing bilateral trade ties.
The estimated investment is Rs 60 billion, reflecting substantial infrastructure and renewable capacity expansion for Bhutan, a country aspiring for High Income GNH (Gross National Happiness) status within a decade.
Construction is set to begin in the first half of 2026, with a five-year target for completion post-groundbreaking.
Context: India-Bhutan Energy Partnership
The deal deepens a long-standing bilateral partnership dating back to the 1960s, notably recognized as the cornerstone of friendly relations between the two Himalayan nations.
Bhutan exports over 95% of its hydropower output to India, offering affordable and reliable clean energy to its southern neighbor while supporting its own economic diversification.
Recent collaborations include the nearly-complete 600 MW Kholongchhu project, a joint venture with Satluj Jal Vidyut Nigam Limited (SJVNL).
Bhutan’s Renewable Energy Vision and Future Plans
Bhutan is targeting 25,000 MW of installed renewable capacity by 2040, with 15,000 MW set to come from hydropower and 5,000 MW from solar.
The Adani-DGPC strategic alliance also extends to a broader MoU signed in May 2025 for joint development of 5,000 MW hydropower projects in Bhutan.
The Wangchhu project is the first to be developed under this comprehensive partnership, signaling a shift toward rapid, efficient implementation benchmarks in the region.
Statements and Stakeholder Perspectives
SB Khyalia, CEO of Adani Power, highlighted Bhutan’s role as a model for sustainable development and expressed enthusiasm for leveraging Adani’s expertise to drive renewable energy initiatives.
DGPC Managing Director Dasho Chhewang Rinzin emphasized Adani’s technical and financial strengths as key to fast-tracking the Wangchhu project, establishing it as a benchmark for similar ventures.
Bhutan PM Tshering Tobgay, during his ongoing India tour, reiterated the historic significance of the partnership in fostering India-Bhutan friendship and economic co-prosperity.
Geopolitical and Environmental Implications
The project enhances regional energy security and offers India geopolitical leverage through strengthened economic and strategic ties with Bhutan, a crucial buffer state in the Himalayas.
While hydropower underpins economic growth and energy exports, stakeholders acknowledge climate risks and ecological concerns, requiring comprehensive assessments for long-term viability.
Source: The Economic Times, Free Press Journal, IANS, AInvest, and ANI NewsIndia’s Adani Power and Bhutan’s Druk Green Power Corporation (DGPC) have signed a landmark agreement to develop the 570 MW Wangchhu Hydroelectric Project in Bhutan as announced on September 5, 2025. This strategic alliance, marked by the presence of Bhutan Prime Minister Tshering Tobgay and Adani Group Chairman Gautam Adani, represents a significant advancement in cross-border clean energy partnerships and regional energy security.
Key Developments and Agreement Structure
Adani Power and DGPC signed a shareholders agreement (SHA) for the project in Ahmedabad, alongside an in-principle power purchase agreement (PPA) and a concession agreement (CA) with the Royal Government of Bhutan.
The Wangchhu Hydroelectric Project will follow a BOOT (Build, Own, Operate, Transfer) model, paving the way for accelerated project development and future public-private collaborations in the region.
Project Features and Strategic Impact
The plant will be a peaking run-of-river hydro development, engineered to meet Bhutan’s peak winter electricity demand when generation dips, while surplus summer energy will be exported to India, reinforcing bilateral trade ties.
The estimated investment is Rs 60 billion, reflecting substantial infrastructure and renewable capacity expansion for Bhutan, a country aspiring for High Income GNH (Gross National Happiness) status within a decade.
Construction is set to begin in the first half of 2026, with a five-year target for completion post-groundbreaking.
Context: India-Bhutan Energy Partnership
The deal deepens a long-standing bilateral partnership dating back to the 1960s, notably recognized as the cornerstone of friendly relations between the two Himalayan nations.
Bhutan exports over 95% of its hydropower output to India, offering affordable and reliable clean energy to its southern neighbor while supporting its own economic diversification.
Recent collaborations include the nearly-complete 600 MW Kholongchhu project, a joint venture with Satluj Jal Vidyut Nigam Limited (SJVNL).
Bhutan’s Renewable Energy Vision and Future Plans
Bhutan is targeting 25,000 MW of installed renewable capacity by 2040, with 15,000 MW set to come from hydropower and 5,000 MW from solar.
The Adani-DGPC strategic alliance also extends to a broader MoU signed in May 2025 for joint development of 5,000 MW hydropower projects in Bhutan.
The Wangchhu project is the first to be developed under this comprehensive partnership, signaling a shift toward rapid, efficient implementation benchmarks in the region.
Statements and Stakeholder Perspectives
SB Khyalia, CEO of Adani Power, highlighted Bhutan’s role as a model for sustainable development and expressed enthusiasm for leveraging Adani’s expertise to drive renewable energy initiatives.
DGPC Managing Director Dasho Chhewang Rinzin emphasized Adani’s technical and financial strengths as key to fast-tracking the Wangchhu project, establishing it as a benchmark for similar ventures.
Bhutan PM Tshering Tobgay, during his ongoing India tour, reiterated the historic significance of the partnership in fostering India-Bhutan friendship and economic co-prosperity.
Geopolitical and Environmental Implications
The project enhances regional energy security and offers India geopolitical leverage through strengthened economic and strategic ties with Bhutan, a crucial buffer state in the Himalayas.
While hydropower underpins economic growth and energy exports, stakeholders acknowledge climate risks and ecological concerns, requiring comprehensive assessments for long-term viability.
Source: The Economic Times, Free Press Journal, IANS, AInvest, and ANI News
