Construction is set to begin in H1 2026.

Adani Power has signed a shareholders’ agreement with Druk Green Power Corporation (DGPC) to jointly develop the 570MW Wangchhu hydroelectric project in Bhutan. The signing took place in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Adani Group chair Gautam Adani. Alongside the agreement, an initial understanding on a power purchase arrangement and a concession agreement with the Royal Government of Bhutan were also established.

Adani Power CEO SB Khyalia said: “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 Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydropower generation is low. During the summer months, it would export power to India.”

The project will follow a build, own, operate, transfer (BOOT) model. Construction of the renewable energy facility and its related infrastructure is estimated to require an investment of about Rs60 billion ($680 million). A detailed project report has already been prepared. Work is scheduled to begin in the first half of 2026, with completion targeted within five years.

This initiative marks the first hydroelectric project undertaken after the memorandum of understanding signed in May 2025 between Adani Group and DGPC. The agreement set the goal of co-developing 5GW of hydropower capacity in Bhutan. Talks regarding additional projects under the collaboration are ongoing.

DGPC managing director Dasho Chhewang Rinzin noted the long-standing energy cooperation between Bhutan and India: “Bhutan and India have, since the 1960s, worked closely together to harness the huge hydropower potential that Bhutan is endowed with. This cooperation in hydropower has immensely benefited both countries and is considered the cornerstone of the exemplary and friendly relations that the two countries enjoy. As Bhutan endeavours to become a high-income GNH (Gross National Happiness) country within the next decade, access to reliable and affordable electricity from its renewable energy resources such as hydropower and solar will be critical to enable other investments to drive its economic growth.”

In parallel with this project, Adani Power recently received a letter of award to establish a 2.4GW greenfield power plant in Pirpainti, located in the Bhagalpur district of Bihar, India.

by power-technology