BhutanAdani, Bhutan Partner On 770MW Hydro Project
Adani Power and Druk Green Power Corporation will develop the Chamkharchhu-I Hydroelectric Project in Bhutan, with construction expected to start in 2027. The project will strengthen Bhutan's clean energy generation capacity and enhance regional energy cooperation.
Global Newsflix 2 min read
Adani Power and Druk Green Power Corporation have signed a Shareholders Agreement to develop the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan. The project will be implemented under the Build, Own, Operate and Transfer model through a 49:51 equity partnership between Adani Power and Druk Green Power.
The signing ceremony was attended by Bhutan Prime Minister Lyonchen Dasho Tshering Tobgay, along with the country's Finance Minister and Minister of Energy and Natural Resources. Representatives of Druk Holding & Investments Limited, Bhutan Power Corporation, and Adani Power were also present.
The Chamkharchhu-I project is located in central Bhutan's Zhemgang District and will be developed on the Chamkarchhu River. The project will have a concession period of 30 years from the commercial operation date.
Anil Sardana, Managing Director of Adani Power, said the project will contribute significantly to enhancing energy security, reducing carbon intensity, and advancing shared sustainability goals. The project is expected to help meet Bhutan's peak winter electricity requirements and enable the export of surplus green power to India during the summer months.
The project is part of a broader 5,000 MW hydropower development partnership between the Adani Group and Druk Green Power Corporation. The partnership marks another significant milestone in Bhutan's hydropower development journey and further strengthens the long-standing energy partnership between Bhutan and India.
Construction is expected to commence in the first half of 2027, with commissioning targeted within six years of groundbreaking. The project will strengthen Bhutan's clean energy generation capacity and enhance regional energy cooperation.
Adani Power shares rose as much as 2.14% to hit a high of ₹205 on the BSE, taking its market capitalisation to ₹3.95 lakh crore, following the announcement of the project.
Key facts
- Adani Power and Druk Green Power Corporation will develop the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan
- The project will be implemented under the Build, Own, Operate and Transfer model through a 49:51 equity partnership
- Construction is expected to commence in the first half of 2027, with commissioning targeted within six years of groundbreaking
- The project will have a concession period of 30 years from the commercial operation date
Three perspectives
Neutral
The project is expected to strengthen Bhutan's clean energy generation capacity and enhance regional energy cooperation. The partnership between Adani Power and Druk Green Power Corporation marks another significant milestone in Bhutan's hydropower development journey. The project's success will depend on various factors, including the timely completion of construction and the effective management of the project.
Positive
The project will contribute significantly to enhancing energy security, reducing carbon intensity, and advancing shared sustainability goals. The partnership between Adani Power and Druk Green Power Corporation will further strengthen the long-standing energy partnership between Bhutan and India. The project is expected to create long-term value for both nations.
Negative
The project's success is not guaranteed and will depend on various factors, including the timely completion of construction and the effective management of the project. The project's environmental impact and social implications will need to be carefully considered and managed. The project's concession period of 30 years may raise concerns about the long-term implications for Bhutan's energy sector.
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