Adani Power Limited and Druk Green Power Corporation (DGPC), Bhutan’s state-owned generation utility, have signed a Shareholders Agreement (SHA) to develop the 570 MW Wangchhu hydroelectric project in Bhutan. The two developers have also signed a Concession Agreement (CA) with the Royal Government of Bhutan and reached an in-principle understanding on the Power Purchase Agreement (PPA).
The project will be developed on a Build, Own, Operate, Transfer (BOOT) model and is expected to involve an investment of about ₹6,000 crore. The detailed project report has already been prepared, with construction scheduled to begin in the first half of 2026. Completion is targeted within five years of groundbreaking, according to Adani Power.
“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,” said SB Khyalia, CEO, Adani Power.
“Considering their technical and financial strength and the immense experience and expertise that the Adani Group brings to the table, the project implementation is expected to be fast-tracked and set a benchmark for other such projects. The project, on completion, will not only help ensure Bhutan’s energy security but also help further strengthen grid connectivity between Bhutan and India,” said Dasho Chhewang Rinzin, MD, DGPC.
This is the first hydroelectric project under the memorandum of understanding signed in May 2025 between Adani Group and DGPC for jointly developing 5,000 MW of hydropower in Bhutan. The two partners are also in discussions for additional projects under the same strategic collaboration.
BI Bureau
