570 MW Wangchhu project to meet Bhutan’s winter demand and boost power exports to India
Adani Power Ltd, India’s largest private sector thermal power producer, has entered into a strategic pact with Bhutan’s state-owned Druk Green Power Corporation (DGPC) to jointly develop the 570 MW Wangchhu hydroelectric project in Bhutan. The venture will entail an investment of approximately ₹6,000 crore and will be developed under the BOOT (Build, Own, Operate, Transfer) model.
The agreements—including a power purchase agreement and a concession agreement—were signed in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani, underscoring the significance of the collaboration for both nations.
Project Highlights
- Capacity: 570 MW (peaking run-of-river project)
- Model: BOOT (Build, Own, Operate, Transfer)
- Investment: ₹6,000 crore
- Timeline: Construction to begin by first half of 2026; completion targeted within five years of groundbreaking
- Purpose: Address Bhutan’s peak winter power demand and enable surplus power exports to India during summer
Strategic Importance
The Wangchhu project is expected to play a pivotal role in Bhutan’s energy security and export ambitions:
- Winter Reliability: Hydropower generation in Bhutan typically dips during winter. The Wangchhu project is designed to bridge this gap, ensuring steady supply during peak demand.
- Export Potential: In summer months, surplus power will be exported to India, further strengthening energy cooperation between the two countries.
- Future Collaboration: This project is the first initiative under a broader MoU signed in May 2025, wherein Adani Group and DGPC agreed to jointly develop up to 5,000 MW of hydropower capacity in Bhutan.
Voices from Leadership
SB Khyalia, CEO of Adani Power, emphasized the project’s dual benefits:
“The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro power generation is low. During the summer months, it would export power to India.”
About the Partners
- Adani Power: India’s largest private thermal power producer, now diversifying its portfolio to include renewable and hydro-based projects.
- Druk Green Power Corporation (DGPC): Bhutan’s sole generation utility, with a current capacity of 2,500+ MW. DGPC aims to expand Bhutan’s generation capacity to 25,000 MW by 2040, supporting both domestic demand and regional exports. Its shareholder is Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan.
Outlook
The Adani–DGPC partnership marks a new era of cross-border energy collaboration between India and Bhutan. With the Wangchhu project as the starting point, both entities are expected to roll out additional hydropower ventures under their 5,000 MW roadmap.
For Bhutan, the project bolsters its ambition of becoming a regional clean energy hub, while for Adani, it reinforces the group’s transition towards sustainable energy solutions beyond its thermal legacy.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.
570 MW Wangchhu project to meet Bhutan’s winter demand and boost power exports to India
Adani Power Ltd, India’s largest private sector thermal power producer, has entered into a strategic pact with Bhutan’s state-owned Druk Green Power Corporation (DGPC) to jointly develop the 570 MW Wangchhu hydroelectric project in Bhutan. The venture will entail an investment of approximately ₹6,000 crore and will be developed under the BOOT (Build, Own, Operate, Transfer) model.
The agreements—including a power purchase agreement and a concession agreement—were signed in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani, underscoring the significance of the collaboration for both nations.
Project Highlights
- Capacity: 570 MW (peaking run-of-river project)
- Model: BOOT (Build, Own, Operate, Transfer)
- Investment: ₹6,000 crore
- Timeline: Construction to begin by first half of 2026; completion targeted within five years of groundbreaking
- Purpose: Address Bhutan’s peak winter power demand and enable surplus power exports to India during summer
Strategic Importance
The Wangchhu project is expected to play a pivotal role in Bhutan’s energy security and export ambitions:
- Winter Reliability: Hydropower generation in Bhutan typically dips during winter. The Wangchhu project is designed to bridge this gap, ensuring steady supply during peak demand.
- Export Potential: In summer months, surplus power will be exported to India, further strengthening energy cooperation between the two countries.
- Future Collaboration: This project is the first initiative under a broader MoU signed in May 2025, wherein Adani Group and DGPC agreed to jointly develop up to 5,000 MW of hydropower capacity in Bhutan.
Voices from Leadership
SB Khyalia, CEO of Adani Power, emphasized the project’s dual benefits:
“The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro power generation is low. During the summer months, it would export power to India.”
About the Partners
- Adani Power: India’s largest private thermal power producer, now diversifying its portfolio to include renewable and hydro-based projects.
- Druk Green Power Corporation (DGPC): Bhutan’s sole generation utility, with a current capacity of 2,500+ MW. DGPC aims to expand Bhutan’s generation capacity to 25,000 MW by 2040, supporting both domestic demand and regional exports. Its shareholder is Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan.
Outlook
The Adani–DGPC partnership marks a new era of cross-border energy collaboration between India and Bhutan. With the Wangchhu project as the starting point, both entities are expected to roll out additional hydropower ventures under their 5,000 MW roadmap.
For Bhutan, the project bolsters its ambition of becoming a regional clean energy hub, while for Adani, it reinforces the group’s transition towards sustainable energy solutions beyond its thermal legacy.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.