Adani Power, Bhutan’s DGPC Seal Pact for ₹6,000 Crore Wangchhu Hydropower Project

Adani Power Ltd. and Druk Green Power Corp. Ltd. (DGPC), Bhutan’s state-owned utility, have formalized agreements to develop the 570 MW Wangchhu hydroelectric project, marking a significant step in expanding India-Bhutan cooperation in renewable energy.

The two partners signed a Shareholders Agreement (SHA), an in-principle Power Purchase Agreement (PPA), and a Concession Agreement (CA) with the Royal Government of Bhutan. The project will be executed on a Build, Own, Operate, Transfer (BOOT) model, with ownership eventually transferred to Bhutan.

The Wangchhu project represents an estimated investment of about ₹6,000 crore, making it one of the largest private sector-led power projects in Bhutan. The detailed project report has already been completed, and construction is expected to begin in the first half of 2026. Adani Power has set a completion target of five years from groundbreaking.

According to Adani Power CEO SB Khyalia, the project will play a critical role in stabilizing Bhutan’s energy supply. “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,” Khyalia said.

Energy Security and Regional Trade

DGPC Managing Director Dasho Chhewang Rinzin emphasized that Adani’s technical and financial capabilities would accelerate project delivery. “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,” Rinzin noted.

Hydropower is the backbone of Bhutan’s economy, accounting for nearly 30 percent of government revenue and about 70 percent of export earnings, most of which come from sales to India. For India, deeper cooperation with Bhutan supports both its clean energy transition and cross-border electricity trade strategy.

The Wangchhu project is the first initiative under a memorandum of understanding signed in May 2025 between the Adani Group and DGPC to jointly develop 5,000 MW of hydropower capacity in Bhutan. The companies said discussions are ongoing to identify and launch further projects under this partnership.

For the Adani Group, the deal underscores its commitment to expanding its renewable energy portfolio beyond India’s borders. The group has been actively investing in solar, wind, and hybrid energy in India and is now extending its reach into neighboring markets through large-scale hydropower collaborations.

Industry experts note that the Wangchhu project comes at a time when South Asia is seeking greater energy integration. India has been strengthening power grid links with Bhutan, Nepal, and Bangladesh to improve regional energy security and reduce dependence on fossil fuels. Projects like Wangchhu not only support Bhutan’s development but also bolster India’s efforts to position itself as a regional energy hub.

With construction set to begin in 2026, the project is expected to be a landmark in the growing strategic partnership between the Adani Group and Bhutan, potentially paving the way for more cross-border renewable ventures in the region.