Reliance Group has forged a partnership with Druk Holding and Investments (DHI) to jointly build 1.27GW solar and hydropower energy projects in Bhutan.
DHI is the commercial and investment arm of the Bhutan government.
The collaboration between Reliance Group and DHI also intend to carry out various initiatives to boost investments in the renewable and clean energy landscape of the South Asian country.
As part of the agreement, the Indian conglomerate has established a new flagship entity Reliance Enterprises, aimed at fostering investment in Bhutan’s clean energy sector.
Equally owned by Reliance Infrastructure and Reliance Power, the new subsidiary will work on sustainable energy solutions and the implementation of smart distribution and metering systems across Bhutan.
Reliance Enterprises, in partnership with DHI, will set up a 500MW solar power plant in Gelephu Mindfulness City along with a 770MW Chamkharchhu-1 hydroelectric project.
To be executed over the next two years in two phases of 250MW each, the proposed solar power project is said to become a key step in Bhutan’s renewable energy journey.
Upon its completion, the solar power plant is expected to become the largest solar installation in Bhutan, contributing significantly to the country’s clean energy capacity and climate change mitigation efforts.
The land for the solar project has been identified. A technical team, including experts from Reliance, DHI, and external consultants, is currently conducting site assessments and technical studies for the facility.
In addition, the proposed solar facility is said to be the largest investment in Bhutan’s renewable energy sector and the biggest foreign direct investment (FDI) by an Indian company in the country.
Located in the Zhemgang District, in Bardo Gewog, the Chamkharchhu-1 hydropower facility is classified as a run-of-the-river project. This project is expected to play a significant role in increasing Bhutan’s power generation capacity which is currently at 2.45GW.
DHI CEO Ujjwal Dahal said: “The partnership between Reliance Enterprises and Druk Holding leverages the strengths of both organisations in the areas of green energy and development.
“We are pleased to be partnering with Reliance and together we are committed to delivering world-class clean energy projects that will benefit both India and Bhutan.”
In August 2024, Indian power company Tata Power partnered with Druk Green Power (DGPC) to develop the 600MW Khorlochhu hydropower project in Bhutan.
