India-based Tata Power has joined forces with Bhutan’s generation utility Druk Holding and Investments’ subsidiary, Druk Green Power (DGPC), to develop at least 5GW of clean energy capacity in Bhutan.
The partnership aims to strengthen Bhutan’s regional energy security, as well as support the transition to renewable energy. Additionally, it is expected to contribute to India’s 500GW clean energy target.
In line with this, both parties have signed a memorandum of understanding (MoU).
The MoU aligns with Bhutan’s goal to increase its total energy generation capacity to 25GW by 2040. To achieve this, Bhutan plans to diversify its energy mix beyond traditional hydropower to include solar and geothermal energy.
DGPC managing director Dasho Chhewang Rinzin said: “This strategic partnership with Tata Power is in keeping with Bhutan’s aspirations to maximise benefits to the people of Bhutan through fast-tracking the harnessing of its huge renewable energy resources for its economic development and long-term energy security.”
Tata Power’s partnership with DGPC will involve the phased development of clean energy projects, including 4.5GW of hydropower. This is expected to come from major facilities such as the 1.12GW Dorjilung hydroelectric project, the 740MW Gongri Reservoir, the 1.8GW Jeri pumped storage project, and the 364MW Chamkharchhu IV project.
Additionally, Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power, will develop 500MW of solar power projects.
Recently, Tata Power acquired a 40% stake in Bhutan’s 600MW Khorlochhu hydroelectric project for INR8.3bn. The hydropower project entails a total investment of more than INR69bn.
The Indian company’s relationship with DGPC began in 2008 with the development of the 12MW Dagachhu hydropower plant. It is said to be Bhutan’s first public-private hydropower partnership.
Tata Power also operates the 1,200km Tala transmission line, which facilitates clean power transmission from Bhutan to India.
The collaboration between both parties is also expected to generate green jobs in Bhutan and contribute to regional energy integration.
Tata Power CEO and managing director Praveer Sinha said: “Tata Power’s partnership with Druk Green Power Corporation reinforces our credentials as the most preferred clean energy partner in the region.
“Together, we are building 5000 MW of clean energy capacity that will help harness Bhutan’s hydropower potential and support both countries’ growing energy demands with reliable and round-the-clock clean energy supply.”
