Adani Power, India’s largest private power producer, and Bhutan’s state-owned Druk Green Power Corporation (DGPC) signed a series of landmark agreements to develop the 570 MW Wangchhu hydroelectric project in Bhutan. The agreements — including the Shareholders Agreement (SHA), an in-principle Power Purchase Agreement (PPA), and the Concession Agreement (CA) with the Royal Government of Bhutan — were formalised in the presence of Bhutanese Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani.
Wangchhu Hydroelectric Project In Bhutan
The project, to be implemented on a BOOT (Build, Own, Operate, Transfer) model, will involve an investment of around Rs 60 billion. Construction is expected to commence in the first half of 2026 with completion targeted within five years of groundbreaking. The facility will function as a peaking run-of-river plant, helping Bhutan manage seasonal fluctuations in hydropower generation.
“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. He added that Bhutan’s commitment to sustainable development made the partnership both impactful and forward-looking.
Chhewang Rinzin, MD of DGPC, said the partnership with the Adani Group would help fast-track implementation, citing the group’s technical and financial strength. “The project, on completion, will not only help ensure Bhutan’s energy security but also help further strengthen grid connectivity between Bhutan and India,” he remarked.
Hydropower has long been the cornerstone of Indo-Bhutan relations with cooperation dating back to the 1960s. Bhutan currently aims to scale up its renewable energy capacity targeting an additional 15,000 MW of hydropower and 5,000 MW of solar power by 2040, as part of its vision to become a High-Income GNH (Gross National Happiness) Country.
The Wangchhu project marks the first initiative under a broader MoU signed in May 2025 between Adani Group and DGPC to jointly develop 5,000 MW of hydropower projects in Bhutan. Discussions for further ventures under this strategic partnership are already underway.
