Bhutan and India’s Adani Group have announced a groundbreaking collaboration to develop a significant hydropower project aimed at harnessing Bhutan’s abundant water resources.
This ambitious initiative will see the construction of up to 5,000 MW of hydropower capacity, reinforcing Bhutan’s position as a key player in the regional energy landscape. The Memorandum of Understanding (MoU), signed recently between the Druk Green Power Corporation (DGPC) of Bhutan and Adani Green Hydro Ltd, marks a pivotal moment in the clean energy sector of South Asia. The partnership, which will unfold in phases, is expected to have a transformative impact on the energy trade between Bhutan and India, enabling Bhutan to export vast quantities of renewable energy. According to officials from both sides, this joint venture is not just about energy production; it is a statement of intent towards achieving regional energy security, economic cooperation, and a greener, more sustainable future for both nations.
The proposed hydropower projects will include additional hydropower and pumped storage facilities, contributing to Bhutan’s ongoing efforts to bolster its renewable energy capacity. As part of the agreement, the two entities will prepare detailed project reports (DPRs) for the planned installations, which will be rolled out over a series of phases. The collaboration builds on an already successful partnership, notably the 570 MW Wangchhu Hydropower Project, where DGPC holds a majority stake of 51% while Adani holds 49%. The strategic partnership between DGPC and Adani Group reflects a deepening collaboration in clean energy development, with both parties sharing a common vision for a sustainable future. For Bhutan, the focus has always been on leveraging its natural resources for clean energy generation, particularly hydropower. With more than 10,000 MW of untapped hydropower potential, Bhutan is poised to become a powerhouse in green energy. The project will significantly contribute to the country’s Renewable Energy Roadmap, which aims for an additional 20,000 MW of power generation capacity by 2040.
Experts have pointed out that this initiative is especially significant as it aligns with Bhutan’s national goals for carbon neutrality and renewable energy expansion. The MoU underscores a long-term commitment to green energy while fostering closer ties between the two nations, further enhancing Bhutan’s role in South Asia’s regional energy cooperation. From an energy market perspective, this partnership presents immense potential for regional power exchanges. With India’s growing demand for renewable energy, the ability to tap into Bhutan’s vast hydropower potential provides a reliable source of clean energy to meet the needs of the Indian subcontinent. Officials note that the proposed hydropower plants will serve to reduce India’s carbon footprint while ensuring consistent power supplies to its commercial markets.
Adani Group, one of India’s largest infrastructure and renewable energy conglomerates, brings decades of expertise in energy project development, financing, and execution. With its extensive experience in scaling up renewable energy capacities, Adani is well-positioned to lead the development of this multi-phased hydropower venture. The group’s commitment to sustainable infrastructure is well-documented, with substantial investments in both solar and wind energy. However, the hydropower collaboration with DGPC is seen as a critical step in diversifying Adani’s renewable energy portfolio. Officials from Adani have stated that the project will allow the company to expand its footprint in Bhutan while facilitating access to India’s energy markets, ensuring reliable power offtake through long-term contracts.
“We are committed to not only expanding Bhutan’s hydropower capacity but also facilitating the export of clean energy to India. This is a powerful example of how cross-border collaboration can drive sustainable development,” said an official from Adani Group. Adani will also play a pivotal role in the integration of Bhutan’s power grid with India’s commercial energy markets, thereby enabling a smooth flow of electricity across borders. This cooperation will significantly bolster Bhutan’s presence in the regional energy market, supporting economic integration and energy trade between the two countries.
For Bhutan, this partnership is an extension of its long-standing focus on hydropower as a key driver of economic growth. Bhutan has long been recognised for its progressive policies on environmental sustainability, and its hydropower projects have been a significant part of this narrative. The nation already exports substantial amounts of electricity to India, and this new collaboration will not only enhance Bhutan’s energy exports but also increase its contribution to regional energy security. The Bhutanese government, through DGPC, has been a driving force in the country’s energy sector, ensuring that renewable energy remains at the forefront of its national development agenda. The country’s remarkable success in managing its hydropower resources has not only allowed it to achieve energy independence but also solidified its reputation as a leader in renewable energy within the region.
“This partnership further strengthens Bhutan’s engagement with India in harnessing the abundant hydropower resources, which are considered a cornerstone of the exemplary and friendly relations between our two countries,” said an official from DGPC. In addition to hydropower, Bhutan is actively diversifying its energy portfolio, exploring other renewable sources such as solar and geothermal energy. This effort is reflected in Bhutan’s Renewable Energy Roadmap, which outlines strategies to meet the country’s growing energy needs while contributing to global sustainability goals.
This partnership between DGPC and Adani is not just about power generation; it is a reflection of a shared vision for sustainability and regional cooperation. Both nations are committed to reducing their carbon footprints and increasing the use of renewable energy sources to combat climate change. By collaborating on hydropower projects, they are laying the groundwork for a future where clean, green energy powers the region’s growth. For Bhutan, this collaboration provides the opportunity to further solidify its position as a leader in clean energy. As both nations continue to work together on hydropower and other renewable energy projects, their partnership is set to serve as a model for sustainable development, not just in the region, but across the world.
The hydropower initiative is also expected to bring economic benefits to both countries, stimulating growth and fostering job creation, particularly in the energy and infrastructure sectors. This initiative further aligns with Bhutan’s commitment to creating a green economy while promoting energy security, regional integration, and economic cooperation. As both countries move forward with this collaborative effort, the world will be watching closely, with hopes that this partnership will pave the way for more cross-border collaborations in the renewable energy sector.
Adani Partners with Bhutan for 5000 MW Clean Energy Project
