In a major step toward strengthening cross-border clean energy cooperation, Adani Power and Bhutan’s Druk Green Power Corporation (DGPC) have signed agreements to jointly develop a 570 MW Wangchhu hydroelectric project in Bhutan. The venture, with an estimated investment of ₹6,000 crore, will not only enhance Bhutan’s energy security but also boost power exports to India.
Adani Power: A Milestone in India–Bhutan Energy Cooperation
The agreements were signed in the presence of Bhutan Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani. According to the Adani Group, the project will be executed under the BOOT model (Build, Own, Operate, Transfer), ensuring long-term benefits for both Bhutan and India.
The Wangchhu project is expected to play a dual role:
- Meeting Bhutan’s peak winter demand when water levels and hydropower generation dip.
- Exporting surplus electricity to India during the summer months, strengthening grid connectivity and bilateral energy trade.
Adani Power: Agreements Signed
The collaboration between Adani Power and DGPC involves multiple key agreements:
- Concession Agreement (CA): Signed with the Government of Bhutan, allowing Adani Power and DGPC to begin project implementation.
- Power Purchase Agreement (PPA): An in-principle understanding to secure long-term buyers for generated electricity.
Industry observers note that this is a strategic win for both countries, as Bhutan looks to expand its renewable energy base, and India seeks to increase imports of affordable clean energy to meet growing demand.
Construction Timeline and Project Details
The Detailed Project Report (DPR) for the Wangchhu project has already been prepared. Construction is expected to begin in the first half of 2026, with a targeted completion within five years of groundbreaking.
Once operational, the 570 MW hydroelectric station will become a key part of Bhutan’s renewable energy expansion, contributing to its target of adding 15,000 MW in hydropower and 5,000 MW in solar capacity by 2040.
The total investment of ₹6,000 crore will cover the power plant, dam, transmission lines, and other supporting infrastructure.
Adani Power: Bhutan’s Growing Renewable Energy Ambitions
Bhutan, often called the “hydropower capital of South Asia,” has long depended on river-based projects to meet its domestic needs and export electricity to India. However, seasonal fluctuations create an imbalance—winter shortages and summer surpluses.
Speaking on the project, SB Khyalia, CEO of Adani Power, emphasized:
“The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro generation falls. During the summer months, surplus power will flow to India, ensuring mutual benefits.”
Dasho Chhewang Rinzin, Managing Director of DGPC, added:
“As Bhutan aspires to become a high-income GNH (Gross National Happiness) country within the next decade, reliable and affordable electricity will play a vital role in enabling further investments and driving growth. Projects like Wangchhu are crucial to ensuring energy security and economic resilience.”
Past Collaborations and Future Roadmap
This isn’t the first time Bhutan has collaborated with Indian companies on clean energy. In November 2024, DGPC tied up with Tata Power to develop 5,000 MW of clean energy projects in the Himalayan kingdom.
The entry of Adani Power into Bhutan’s energy sector further signals the country’s intention to diversify its partnerships and accelerate hydropower expansion. With plans to add 15,000 MW hydropower capacity and 5,000 MW solar by 2040, Bhutan is positioning itself as a regional renewable energy hub.
Adani Power: Strategic Importance for India
For India, the project holds multiple advantages:
- Energy Security: Importing surplus hydropower from Bhutan helps reduce dependence on fossil fuels.
- Clean Energy Push: Supports India’s target of 50% installed capacity from non-fossil fuel sources by 2030.
- Cross-Border Ties: Strengthens the India–Bhutan energy corridor, already a cornerstone of bilateral relations.
- Peak Demand Management: Summer imports from Bhutan will help Indian utilities meet seasonal spikes.
The deal also underlines the growing importance of regional energy trade in South Asia, with India playing a central role as both a major market and a key investor.
Adani Power: Economic and Social Impact
The Wangchhu hydro project is expected to:
- Create thousands of jobs during the construction phase in Bhutan.
- Boost local infrastructure, including roads, housing, and services.
- Provide a steady revenue stream for the Bhutanese government through electricity exports.
- Encourage technology transfer and capacity building in hydropower management.
For the Adani Group, it reinforces its presence in the clean energy domain, complementing its existing solar, wind, and thermal portfolios.
Challenges Ahead
While the project promises significant benefits, experts caution about potential challenges:
- Environmental Concerns: Large hydro projects often raise concerns about ecosystem impact, resettlement, and river flow changes.
- Financing Risks: With a ₹6,000 crore investment, timely financing and cost management will be critical.
- Cross-Border Power Pricing: Ensuring fair tariffs and long-term purchase agreements with Indian buyers will be key.
However, both Adani Power and DGPC remain confident that careful planning and stakeholder engagement will mitigate these risks.
The Adani–DGPC Wangchhu hydroelectric project marks a significant milestone in India–Bhutan clean energy cooperation. With its ₹6,000 crore investment, the project is set to provide energy security for Bhutan, export opportunities for India, and a boost to regional sustainability goals.
As construction begins in 2026 and completion is targeted within five years, the project could emerge as a model for cross-border renewable energy partnerships, setting the stage for greater South Asian cooperation in the decades to come.
Disclaimer : This article is intended for informational purposes only. Project details, timelines, and benefits may be subject to change based on official announcements and market conditions. Readers are advised to refer to official company and government statements for the latest updates.
