Adani Power, Druk Green to build 570 MW hydroelectric project in Bhutan

The ₹6,000 crore Wangchhu project, for which agreements were signed today, will meet Bhutan's winter energy demand, with the surplus exported to India in the summer

Adani Power, India’s private power producer, and Bhutan’s state-owned Druk Green Power Corporation (DGPC) on Saturday signed key agreements to develop the 570 MW Wangchhu hydroelectric project in Bhutan.

 

The agreements, signed in the presence of Bhutanese Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani, pave the way for construction on a Build, Own, Operate, Transfer (BOOT) model. The ₹6,000 crore investment is expected to create jobs, strengthen infrastructure and boost energy cooperation between the two nations.

Construction to begin in 2026

The detailed project report has been completed, with construction scheduled to begin in early 2026. The project is targeted to become operational within five years of groundbreaking.

 

 

Designed as a peaking run-of-river plant, the project is critical for meeting Bhutan’s winter energy demand. Surplus electricity generated in the summer months will be exported to India.

 

Adani Power Chief Executive Officer SB Khyalia said the initiative reflects Bhutan’s leadership in sustainable development and will play a vital role in strengthening the country’s renewable energy portfolio.

Bhutan’s clean energy ambitions

DGPC Managing Director Dasho Chhewang Rinzin said the partnership would fast-track project implementation and establish benchmarks for future projects. He underlined Bhutan’s target of adding 15,000 MW of hydropower and 5,000 MW of solar capacity by 2040, positioning clean energy at the core of its economic growth.

 

The Wangchhu project is the first to be executed under a broader agreement signed in May 2025 between Adani Group and DGPC to jointly develop 5,000 MW of hydropower in Bhutan.

Diplomatic engagements reinforce ties

Bhutanese Prime Minister Tshering Tobgay, on an official visit to India, hailed the agreement as a “historic milestone” in clean energy cooperation. His trip has also included cultural and spiritual engagements, such as a visit with his spouse to the Shri Ram Janmabhoomi Temple in Ayodhya.

 

Earlier, External Affairs Minister S Jaishankar met Tobgay, reaffirming that the India-Bhutan partnership remains “unique and time-tested”.