Rs 60 bn boot-model project to meet Bhutan’s winter demand, export surplus power to India; marks first major private Indian entry into Bhutan’s hydro sector


Adani Power and Bhutan’s Druk Green Power Corp. (DGPC) have signed key agreements to jointly develop a 570-megawatt hydroelectric project, strengthening energy ties between the two countries as Bhutan seeks to scale up its renewable capacity.

The Wangchhu project, to be built on a build-own-operate-transfer (BOOT) model, will involve an investment of about Rs 60 billion, the companies said in a joint statement. Agreements were signed in Thimphu in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani.

Adani Power, India’s largest private power producer, and state-owned DGPC also initialled an understanding on a power purchase agreement. Construction is expected to begin in the first half of 2026, with commissioning targeted within five years of groundbreaking.
The Wangchhu hydro plant is designed as a peaking run-of-river project, aimed at supplying Bhutan’s winter power demand when water flows are low, while exporting surplus electricity to India in summer months.

“Bhutan is a role model for the world in sustainable development, and we are excited to play a leading role in developing the country’s renewable energy resources,” said S.B. Khyalia, CEO of Adani Power. “The Wangchhu project will critically meet Bhutan’s peak winter demand and export power to India in summer.”

DGPC Managing Director Dasho Chhewang Rinzin said the collaboration reflects Bhutan’s long-standing hydropower partnership with India dating back to the 1960s. “As Bhutan seeks to become a high-income Gross National Happiness country in the next decade, reliable electricity from hydropower and solar will be critical,” he said.

Bhutan plans to add 15,000 MW of hydropower and 5,000 MW of solar capacity by 2040 to fuel economic growth. The Wangchhu project is the first to be developed under a memorandum of understanding signed in May 2025 between the Adani Group and DGPC to jointly build 5,000 MW of hydropower in the Himalayan nation.

Hydropower exports to India have long underpinned Bhutan’s economy and bilateral relations. The new partnership marks the first time a large private Indian company has been brought into Bhutan’s hydropower sector, which has traditionally relied on Indian state-backed financing and execution.