Tata Power Partners with DGPC to Develop 5,000 MW Clean Energy in Bhutan

21 Nov 2024 , 10:11 AM

Tata Power Company Ltd has entered into a strategic partnership with Druk Green Power Corporation Ltd (DGPC), a subsidiary of Bhutan’s sole power generation utility, Druk Holding and Investments Ltd.

The collaboration aims to develop at least 5,000 MW of clean energy capacity in Bhutan, aligning with Bhutan’s vision to achieve 25,000 MW of generation capacity by 2040 for energy security and regional integration.

The partnership involves the phased development of 4,500 MW of hydropower projects, including:

• 1,125 MW Dorjilung HEP
• 740 MW Gongri Reservoir
• 1,800 MW Jeri Pumped Storage
• 364 MW Chamkharchhu IV

Additionally, 500 MW of solar energy projects will be undertaken by Tata Power Renewable Energy Ltd (TPREL), a subsidiary of Tata Power.

Recently, Tata Power acquired a 40% stake in the 600 MW Khorlochhu Hydroelectric Project for ₹8.30 billion, with a planned investment of over ₹69 billion to develop the project.

Tata Power and DGPC have a long-standing partnership since 2008, starting with the successful development of the 126 MW Dagachhu Hydropower Plant, Bhutan’s first Public-Private Partnership (PPP) in hydropower.

Tata Power also operates a 1,200 km Tala transmission line, which transmits clean power from Bhutan to India.

Bhutan plans to diversify its energy portfolio beyond hydropower to include solar and geothermal energy, supported by innovative project structuring and financing via such strategic partnerships.

The collaboration is backed by the Royal Government of Bhutan and the Government of India, marking the largest clean energy partnership between two leading power companies in Asia.

Dr. Praveer Sinha, CEO and MD of Tata Power, stated, “Together, we are building 5,000 MW of clean energy capacity to harness Bhutan’s hydropower potential and provide reliable, round-the-clock clean energy to both nations.”