Adani Power Seals Landmark Bhutan Hydropower Deal for 570 MW Project
- THE MAG POST
- Sep 7
- 4 min read
The burgeoning partnership between Adani Power and Bhutan’s Druk Green Power Corporation (DGPC) heralds a significant leap forward in renewable energy development, particularly concerning the ambitious 570-megawatt Wangchhu hydroelectric project. This collaboration, involving a substantial investment of approximately Rs 6,000 crore, is set to reshape the energy landscape of the Himalayan kingdom. The project, structured under a Build, Own, Operate, and Transfer (BOOT) model, signifies a deep commitment to harnessing Bhutan's rich hydropower potential. With detailed project reports finalized and construction slated to begin in early 2026, the initiative is poised to commence operations within five years, addressing critical energy needs and fostering economic growth through enhanced energy security and export capabilities.
Bhutan's Hydropower Future Bolstered by Adani Partnership
The landscape of renewable energy in the Himalayas is set for a significant transformation with a landmark agreement between Adani Power and Bhutan’s Druk Green Power Corporation (DGPC). This strategic alliance is poised to develop a substantial 570-megawatt hydroelectric project, the Wangchhu hydroelectric project, marking a critical step towards enhancing energy security and fostering cross-border energy trade. The initiative represents an investment of approximately Rs 6,000 crore, underscoring the scale and ambition of this collaboration. The project's implementation will follow a Build, Own, Operate, and Transfer (BOOT) model, ensuring a long-term commitment and operational efficiency. This partnership not only addresses Bhutan's domestic energy needs, particularly during peak winter demand when hydropower generation typically wanes, but also positions the nation as a key energy exporter to India during the summer months.
Wangchhu Project: A Catalyst for Energy Security
The Wangchhu hydroelectric project, with its detailed project report already finalized, is on track to commence construction in the first half of 2026. This ambitious undertaking is slated for completion within five years of breaking ground, promising a swift realization of its potential. The project's strategic advantage lies in its ability to meet Bhutan's peak winter energy demands, a period when natural water flow for hydropower generation is at its lowest. Furthermore, during the surplus summer months, the generated power will be exported to India, creating a valuable revenue stream and reinforcing regional energy interdependence. This dual-purpose functionality makes the Wangchhu project a cornerstone of Bhutan's energy strategy and a significant contributor to India's renewable energy portfolio.
Strategic Alignment and Future Prospects
This groundbreaking initiative is the first under a broader memorandum of understanding (MoU) signed in May 2025, which outlines the joint development of a staggering 5,000 MW of hydropower capacity in Bhutan by Adani Group and DGPC. Discussions are already underway for subsequent projects, signaling a deep and enduring strategic partnership. The synergy between Adani Power, India's largest private thermal power producer, and DGPC, Bhutan's sole power generation utility, is expected to unlock significant potential. DGPC, backed by Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan, aims to elevate Bhutan's generation capacity to 25,000 MW by 2040, demonstrating a forward-looking vision that now also encompasses solar energy expansion.
Adani Power's Corporate Developments
Beyond its international ventures, Adani Power is also making significant strides domestically. Shareholders have recently approved a strategic stock split in a 1:5 ratio, a move designed to enhance liquidity and broaden investor accessibility. This corporate action, approved via a postal ballot concluded in early September 2025, will see each existing equity share of Rs 10 being sub-divided into five fully paid-up equity shares of Rs 2 each. The shares will rank equally in all respects, ensuring a fair distribution and maintaining the company's robust financial standing. This decision reflects Adani Power's commitment to shareholder value and its proactive approach to corporate governance and market engagement.
Key Takeaways: A New Dawn for Himalayan Hydropower
The collaboration between Adani Power and DGPC on the Wangchhu hydroelectric project is more than just an infrastructure development; it is a testament to regional cooperation and a bold step towards a sustainable energy future. By leveraging Bhutan's immense hydropower potential and Adani's expertise, this venture promises to deliver energy security, economic growth, and environmental benefits. The strategic vision extends beyond this initial project, with plans for substantial future developments, solidifying a partnership that could redefine hydropower generation in the region and contribute significantly to the global clean energy transition. The concurrent corporate actions by Adani Power further underscore its growth trajectory and strategic foresight.
Project Name | Capacity | Investment | Model | Key Partner | Status |
Wangchhu Hydroelectric Project | 570 MW | ~ Rs 6,000 crore | Build, Own, Operate, Transfer (BOOT) | Druk Green Power Corporation (DGPC), Bhutan | Construction begins H1 2026, completion within 5 years |
Overall MoU Projects | 5,000 MW (jointly) | Undisclosed | Strategic Partnership | DGPC, Bhutan | Discussions ongoing for future projects |
Adani Power Stock Split | N/A | N/A | Corporate Action | Shareholders approved 1:5 split | Approved via postal ballot (Aug-Sep 2025) |
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