Adani and Druk Green join forces in Bhutan. 5 GW of green energy on the horizon

Adani Group and Bhutanese energy giant Druk Green Power Corporation (DGPC) announce strategic partnership to develop 5,000 MW of hydropower and pumped storage projects in Bhutan

Adani Group and Bhutan’s Druk Green Power Corporation (DGPC) have signed a strategic agreement to jointly develop hydropower and pumped-storage power plants with a combined capacity of 5,000 megawatts in Bhutan. This partnership aligns with a broad plan between the two countries aimed at enhancing regional energy security and achieving sustainable development goals.

Historic cross-border cooperation
The memorandum was signed in Bhutan’s capital, Thimphu, in the presence of senior representatives from both governments, including Bhutan’s Prime Minister Dasho Tshering Tobgay and Energy Minister Lyonpo Gem Tshering. The agreement was signed by DGPC Managing Director Dasho Chhewang Rinzin and Adani Green Hydro COO Naresh Telgu.

Under the agreement, both companies will jointly identify sites for new investments, prepare detailed project reports, and implement projects in subsequent phases. The first joint step will be the expansion of the ongoing Wangchhu hydropower project, planned at 570 MW with potential growth up to 900 MW. DGPC will retain a majority 51% stake, while Adani will hold 49%.

Adani to facilitate export and integration with the Indian market
Naresh Telgu of Adani Green Hydro emphasized: “Together with DGPC, we are enabling Bhutan to fully harness its hydropower potential and export reliable green energy to India. This is a prime example of fruitful cross-border cooperation aligned with shared sustainable development goals.”

Adani will also ensure the offtake of generated power and integrate the projects with India’s energy market, strengthening Bhutan’s position as a key clean energy supplier in South Asia.

Cooperation built on strong foundations
After signing, Dasho Chhewang Rinzin said: “This strategic partnership with Adani Group strengthens our longstanding relations with the Indian government. Bhutan’s hydropower potential is the cornerstone of our friendship and cooperation with our neighbor, and this initiative is a step towards deeper integration and mutual benefits.” The deal also supports Bhutan’s “Renewable Energy Roadmap,” aiming to achieve 20 GW of additional capacity by 2040, including solar and geothermal energy.

Bhutan’s energy market: ambitions, challenges, and future
Bhutan is preparing for one of the world’s most ambitious energy transitions. By 2040, the country plans to increase its total generation capacity to 30,000 MW, including 15,000 MW from new hydropower projects and 5,000–6,000 MW from solar energy.

Currently, Bhutan has about 2,500 MW of installed hydropower capacity and is constructing an additional 3,000 MW. However, only a small portion—around 450 MW—is available during winter, causing shortages during peak demand. Energy consumption doubled from 450 MW to 900 MW between 2022 and 2023, exceeding 1,100 MW in 2025. Projections estimate demand reaching 4,000 MW by 2040.

DGPC CEO Dasho Chhewang Rinzin highlights the need for energy policy reform: “We must think strategically. We need a portfolio based on solar-hydro hybrids and must open up to private investors.”

Bhutan currently allows up to 49% private ownership in hydropower projects and full ownership in solar investments. Historically, most projects were financed bilaterally with India, but the country now aims to attract multilateral investors and institutional funds.

Policy, climate, and sustainability
Bhutan, the world’s only carbon-negative country, has long promoted an economy based on sustainable development. Industry accounts for 80% of energy consumption, with households using the remaining 20%. Natural resources are constitutionally protected and cannot be privatized.

Climate change is impacting the sector: rivers are becoming less predictable, glaciers are melting, and winter energy drops force the government to invest in reservoirs. New dams, transmission lines, and energy storage systems will be required. It is estimated that Bhutan needs around $26 billion in investments to meet its energy goals—approximately nine times the current GDP.

Source: investbhutan.gov.bt