Reliance Power has signed a commercial term sheet for a long-term power purchase agreement (PPA) with Green Digital, a subsidiary of Druk Holding and Investments (DHI), the investment arm of the Royal Government of Bhutan. This agreement supports regional clean energy integration and cross-border energy cooperation in South Asia.

Under the terms of the agreement, Reliance Power and DHI will jointly develop Bhutan’s largest solar power project through a 50:50 partnership. The project will have an installed capacity of 500 megawatts (MW) and will be executed under a build-own-operate (BOO) model. The capital investment is expected to reach Rs20 billion (approximately $234 million), marking the largest private sector foreign direct investment in Bhutan’s solar energy sector to date.

This initiative strengthens Reliance Power’s presence in the regional renewable energy market and demonstrates its long-term commitment to developing clean energy infrastructure. The company has already initiated the engineering, procurement, and construction (EPC) tendering process and is working with financial institutions to structure sustainable financing solutions for the project.

The solar project aligns with the Reliance Group’s broader strategy to grow its renewable energy portfolio and reinforces India-Bhutan economic collaboration. The implementation timeline extends over 24 months, with completion targeted by May 2027. The project also follows Bhutan’s sustainability framework and contributes to the South Asian region’s clean energy transition goals.

In October 2024, Reliance Enterprises, a joint venture of Reliance Power and Reliance Infrastructure, entered into a strategic partnership with DHI. This collaboration includes the development of both solar and hydropower assets in Bhutan, including the 500MW solar project and the 770MW Chamkharchhu-I hydroelectric project.

Reliance Power’s clean energy portfolio includes 2.5 gigawatts peak of solar capacity and more than 2.5 gigawatt hours of battery energy storage system (BESS), making it a leading player in India’s integrated solar plus storage segment. These projects are part of the company’s strategy to support long-duration energy solutions and sustainable infrastructure.

In January 2025, Reliance NU Suntech, a subsidiary of Reliance Power, announced plans to invest $1.16 billion in a solar and storage facility in Andhra Pradesh, India. The project is expected to be Asia’s largest, with a 930MW solar generation contract and a 465MW/1,860 megawatt-hour BESS component.

The new projects in Bhutan and India reflect Reliance Power’s focus on renewable energy growth, regional collaboration, and the development of sustainable, long-term infrastructure solutions.

by power-technology