The shareholders agreement (SHA) to establish a 570 MW Wangchhu hydropower project in Bhutan was signed on Saturday by Adani Power and Druk Green Power Corp Ltd (DGPC), the country’s state-owned generation utility.
Along with signing the concession agreement (CA) for the project with the Royal Government of Bhutan, the developers also initialed an in-principle understanding on the power purchase agreement (PPA).
Prime Minister Dasho Tshering Tobgay of Bhutan and Adani Group Chairman Gautam Adani were present when the agreements were inked.
The action opens the door for DGPC and Adani Power to begin implementing the peaking run-of-river Wangchhu hydropower project using the Build, Own, Operate, Transfer (BOOT) design.
“With this renewable energy project, we are thrilled to play a leading role in the development of the nation’s natural resources, and Bhutan is a global model for sustainable development.” Bhutan’s peak winter demand, when hydro power supply is at its lowest, will be vitally met by the Wangchhu hydroelectric project. It would ship electricity to India in the summer, according to SB Khyalia, CEO of Adani Power.
The construction of the renewable energy power plant and associated infrastructure for the Wangchhu project will cost roughly Rs 60 billion.
Since the detailed project study has already been prepared, construction is anticipated to start in the first half of 2026 and be finished within five years of the groundbreaking.
Since the 1960s, Bhutan and India have collaborated extensively to utilize Bhutan’s enormous hydroelectric potential. According to Dasho Chhewang Rinzin, MD, DGPC, “this hydropower cooperation has greatly benefited both countries and is considered the cornerstone of the exemplary and friendly relations that the two countries enjoy.”
Access to dependable and reasonably priced electricity from its renewable energy resources, such as hydropower and solar, will be essential as Bhutan works to become a High Income GNH (Gross National Happiness) Country within the next ten years. This will allow for other investments that will propel the country’s economic progress.
Therefore, by 2040, Bhutan intends to increase its hydropower capacity by 15,000 MW and its solar generation capacity by 5,000 MW.
“DGPC is pleased to be working with the Adani Group to establish the Wangchhu hydropower project, which will have a capacity of 570 MW. The project implementation is anticipated to proceed quickly and establish a standard for similar projects given the Adani Group’s technical and financial prowess as well as their vast experience and skills, Rinzin continued.
The Adani Group and DGPC signed a Memorandum of Understanding in May 2025 to jointly construct 5,000 MW of hydropower in Bhutan, and the Wangchhu is the first hydroelectric project to be undertaken under that agreement.
Future projects under this strategic cooperation are being discussed further between DGPC and Adani Group.
The biggest private thermal power producer in India is Adani Power, which is a component of the Adani portfolio. The company operates twelve power stations in Gujarat with an installed thermal generating capacity of 18,110 MW.
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