India, Bhutan Sign Agreements for Wangchhu Hydropower

India’s Adani Power Ltd and Bhutan’s state-owned Druk Green Power Corporation (DGPC) have signed pivotal agreements to develop the 570 MW Wangchhu Hydroelectric Project, a Rs 6,000 crore initiative set to transform Bhutan’s energy landscape. The agreements, formalized on Saturday in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani, include a shareholders agreement, an initial Power Purchase Agreement, and a Concession Agreement with the Royal Government of Bhutan.

The Wangchhu project, operating under a Build, Own, Operate, Transfer (BOOT) model, will be a peaking run-of-river hydroelectric facility designed to meet Bhutan’s peak winter energy demands while exporting surplus power to India during summer months. SB Khyalia, CEO of Adani Power, highlighted its significance, stating, “Bhutan is a global role model for sustainable development, and we are excited to harness its natural resources through this renewable energy project, which will bolster energy security for both nations.”

Construction is slated to begin by mid-2026, with completion targeted within five years, following the finalization of the detailed project report. The project includes a renewable energy plant and supporting infrastructure, promising to enhance grid connectivity between Bhutan and India. Dasho Chhewang Rinzin, DGPC’s managing director, emphasized the deep-rooted energy partnership, noting, “Since the 1960s, Bhutan and India have collaborated to tap Bhutan’s vast hydropower potential, a cornerstone of our exemplary bilateral relations.”

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Rinzin outlined Bhutan’s ambitious energy goals, aiming to add 15,000 MW of hydropower and 5,000 MW of solar capacity by 2040 to support its vision of becoming a high-income Gross National Happiness (GNH) nation. The Wangchhu project marks the first step in a broader Memorandum of Understanding signed in May 2025 between Adani Group and DGPC to develop 5,000 MW of hydropower in Bhutan. “Adani’s technical expertise and financial strength will fast-track this project, setting a benchmark for future initiatives,” Rinzin added.

The collaboration is expected to not only ensure Bhutan’s energy security but also foster economic growth by enabling investments in other sectors. As discussions for additional projects under this strategic partnership gain momentum, the Wangchhu project stands as a testament to the enduring India-Bhutan alliance, poised to deliver sustainable energy solutions and strengthen regional ties.

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