Bhutan, Adani Group sign MoU to jointly develop 5,000MW hydropower projects

By Dorji Choden

The Druk Green Power Corporation (DGPC) and India’s Adani Group signed a Memorandum of Understanding  MoU) in Thimphu yesterday to jointly develop hydropower projects totalling 5,000 megawatts (MW).

The broad initiative includes both conventional hydropower and pumped storage projects, which will be identied, tudied, and developed in phases through detailed project reports (DPRs).

The MoU was signed by DGPC’s managing director, Dasho Chhewang Rinzin, and Naresh Telgu, chief operating ofcer (Hydro and Pumped Storage Projects) of Adani Green Hydro Limited.

Describing the agreement as a milestone, Dasho Chhewang Rinzin said it marks Bhutan’s growing momentum in achieving its target of 20,000MW of installed capacity by 2040.

“The past year has been transformative for the energy sector. The new government has not only reafrmed our 20,000MW target but also introduced critical policy reforms. These include allowing foreign direct investment, enabling private sector participation in hydropower, and permitting 100 percent ownership in solar energy
ventures in Bhutan,” he said.

Naresh Telgu underlined the signicance of the partnership, saying it reects a shared commitment to regional energy security.

“Together with DGPC, we aim to unlock Bhutan’s hydropower potential and provide clean, reliable electricity to India. This is a strong example of cross-border cooperation toward common sustainable development goals,” he said.

DGPC remains a central player in Bhutan’s clean energy journey, contributing to domestic energy reliability and regional sustainability. Through partnerships like this, Bhutan strengthens its position in South Asia’s evolving energy landscape.

The Adani Group, a key player in India’s infrastructure and renewable energy sector, brings to the table proven capabilities in project development, nancing, and access to power markets. It will help Bhutan scale up hydropower generation and integrate seamlessly with India’s energy grid.

Prime Minister Tshering Tobgay highlighted the centrality of energy in Bhutan’s development aspirations.

“The energy sector is vital to the continued growth and development of the country. Renewable energy will be key to realising our vision of our Gelephu Mindfulness City. Its benets extend beyond our borders, contributing meaningfully to India’s continued growth,” he said.

He also thanked Indian  investors, including Tata Power and Reliance Power, for their long standing support. Tata Power is working on 5,500MW of hydropower, while Reliance Power is involved in 770MW of hydro and 200MW of solar projects in Bhutan.

Dasho Chhewang Rinzin further highlighted the scale of Bhutan’s hydropower resources. “Our technical potential is around 36,000MW excluding pumped storage. If we include pumped storage, the potential rises to about 50,000MW. This surpasses what we’ve traditionally envisioned,” he said.

As part of this collaboration, Adani will facilitate reliable power offtake and integration into India’s commercial markets, reinforcing Bhutan’s role as a key player in the regional energy trade. The partnership enjoys strong backing from both the Royal Government of Bhutan and the Government of India, reecting a shared vision for sustainable energy development and deeper economic ties.