Adani Power, India’s largest private power producer, has signed a Shareholders Agreement (SHA) with Druk Green Power Corporation Ltd. (DGPC), Bhutan’s state-owned power generation utility, to jointly develop the 570 MW Wangchhu hydroelectric project in Bhutan.
In addition to the SHA, the two sides also initialled an in-principle understanding on the Power Purchase Agreement (PPA). Crucially, a Concession Agreement (CA) for the project was signed with the Royal Government of Bhutan, Adani Power said in a release.
The signing ceremony took place in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani. These agreements mark a significant step toward launching the peaking run-of-river Wangchhu project under a BOOT (Build, Own, Operate, Transfer) model.
The project is expected to draw an investment of approximately ₹60 billion for the construction of the hydroelectric facility and associated infrastructure. With the detailed project report already prepared, construction is slated to begin in the first half of 2026, with completion targeted within five years of groundbreaking.
“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,” said SB Khyalia, CEO of Adani Power. “The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro generation is low. During the summer months, it will export power to India.”
Dasho Chhewang Rinzin, Managing Director of DGPC, highlighted the long-standing cooperation between India and Bhutan in the hydropower sector.
“Since the 1960s, Bhutan and India have closely worked together to harness Bhutan’s vast hydropower potential. This collaboration has immensely benefited both countries and forms the cornerstone of their strong bilateral relations,” he said.
He noted that Bhutan aims to become a High-Income GNH (Gross National Happiness) Country within the next decade, and access to reliable and affordable electricity from renewable sources like hydro and solar will be key to supporting further investments and economic growth.
“Bhutan plans to add another 15,000 MW in hydropower and 5,000 MW in solar generation capacity by 2040. DGPC is pleased to partner with the Adani Group to establish the 570 MW Wangchhu hydroelectric project. Given Adani’s technical and financial strength, and extensive experience, the project is expected to be fast-tracked and set a benchmark for similar initiatives,” Rinzin added. “Once completed, the project will bolster Bhutan’s energy security and enhance grid connectivity with India.”
The Wangchhu project is the first hydroelectric venture under a memorandum of understanding signed in May 2025 between the Adani Group and DGPC for the joint development of 5,000 MW of hydropower capacity in Bhutan. Both parties are continuing discussions for future projects under this strategic partnership.
Adani Power (APL), part of the Adani portfolio, currently operates 18,110 MW of installed thermal power capacity across twelve plants in states including Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, in addition to a 40 MW solar plant in Gujarat. The company aims to help transform India into a power-surplus nation through technology, innovation, and a focus on providing affordable electricity.
DGPC, Bhutan’s sole generation utility, currently manages a portfolio exceeding 2,500 MW and is rapidly expanding to meet the country’s 2040 goal of 25,000 MW in generation capacity. A subsidiary of Druk Holding & Investments—the commercial arm of the Royal Government of Bhutan—DGPC was established in 2008 to lead the development of the nation’s hydropower resources. The company has since diversified into solar energy and built in-house expertise in water-to-wire energy solutions, applied R&D, and operational excellence.
