Adani Power, India’s largest private power producer, and Druk Green Power Corp. Ltd. (DGPC), Bhutan’s state-owned generation utility, on friday signed the Shareholders Agreement (SHA) for setting up a 570 MW Wangchu hydroelectric project. An in-principle understanding on the Power Purchase Agreement (PPA) was also initialed. Most importantly, the Developers also signed the Concession Agreement (CA) for the project with the Royal Government of Bhutan.
These Agreements, signed in the presence of the Prime Minister of Bhutan, Dasho Tshering Tobgay and Mr. Gautam Adani, Chairman, Adani Group, pave the way for Adani Power and DGPC to initiate the implementation of the peaking run-of-river Wangchu hydroelectric project on a BOOT (Build, Own, Operate, Transfer) model.
The project could not be turned into a 900 WM reservoir porject due to poor geology for the reservoir area.
Project Investment
The Wangchu project will see an investment of about INR 60 billion in setting up the renewable energy power plant and related infrastructures. With the preparation of the detailed project report already completed, construction work is expected to begin by the first half of 2026, and the completion is targeted within five years of groundbreaking.
“Bhutan is a role model for the world in sustainable development, and we are very excited to play a leading role in the development of the country’s natural resources through this renewable energy project. The Wangchu 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 Mr. SB Khyalia, CEO, Adani Power.
Happy Partnership between DGPC and Adani Power
“DGPC is happy to be partnering with the Adani Group for establishing the 570 MW Wangchu project. 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.
Adani Power (APL), a part of the Adani portfolio, is the largest private thermal power producer in India. The Company has an installed thermal power capacity of 18,110 MW spread across twelve power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, apart from a 40 MW solar power plant in Gujarat. With the help of a world-class team of experts in every field of power, Adani Power is on course to achieve its growth potential. The company is harnessing technology and innovation to transform India into a power-surplus nation and provide quality and affordable electricity for all.
