Adani Power joins hands with Bhutan to build 570 MW Wangchhu hydropower project

In a major boost to India-Bhutan clean energy cooperation, Adani Power, one of India’s largest private sector power producers, and Bhutan’s state-owned Druk Green Power Corporation (DGPC) have signed agreements to jointly develop the 570 MW Wangchhu hydroelectric project. The signing ceremony, attended by Bhutanese Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani, marks a significant milestone in the region’s energy partnership.

The project, with an estimated investment of ₹6,000 crore, will be developed under the Build, Own, Operate, Transfer (BOOT) model, creating jobs, strengthening infrastructure, and deepening energy collaboration between the two nations.

Construction Timeline and Project Scope

• The Detailed Project Report (DPR) has already been completed.

• Construction is scheduled to begin in early 2026.

• The Wangchhu project is expected to become operational within five years of groundbreaking.

Designed as a peaking run-of-river plant, it will help Bhutan meet its winter energy demand, while surplus electricity during summer months will be exported to India, further enhancing bilateral trade in renewable energy.

Leadership Perspectives

Adani Power CEO SB Khyalia emphasized that the Wangchhu initiative reflects Bhutan’s leadership in sustainable development and will play a key role in expanding the nation’s renewable energy portfolio.

Druk Green Power Corporation (DGPC) Managing Director Dasho Chhewang Rinzin highlighted that the partnership would fast-track project execution and serve as a benchmark for future collaborations. He reiterated Bhutan’s ambitious clean energy targets of:

• 15,000 MW of hydropower capacity

• 5,000 MW of solar capacity
  by 2040, placing renewable energy at the center of the country’s long-term growth strategy.

A Broader Strategic Partnership

The Wangchhu project is the first initiative under a wider 5,000 MW hydropower cooperation agreement signed between Adani Group and DGPC in May 2025. This agreement positions both entities as long-term partners in building sustainable energy infrastructure in Bhutan.

Diplomatic and Cultural Engagements

During his official visit to India, Prime Minister Tshering Tobgay described the hydroelectric partnership as a “historic milestone” in strengthening bilateral ties through clean energy.

Beyond energy cooperation, his trip also featured cultural and spiritual engagements, including a visit with his spouse to the Shri Ram Janmabhoomi Temple in Ayodhya.

Earlier, External Affairs Minister S. Jaishankar met with Tobgay, reaffirming that the India-Bhutan relationship remains “unique and time-tested”, rooted in trust, mutual respect, and shared development goals.

 About Adani Power

Adani Power is a prominent Indian multinational power and energy company, and a subsidiary of the Adani Group. Here is a detailed overview:

Company Profile and Business Operations

• Headquarters: Ahmedabad, Gujarat, India.

• Founder: Gautam Adani.

• CEO: Shersingh B. Khyalia, appointed on January 11, 2022. He is a Chartered Accountant with over 32 years of experience in the power industry.

• Core Business: Adani Power is primarily a private thermal power producer. It operates a number of coal-based thermal power plants across India.

• Generation Capacity: The company has an installed power generation capacity of over 18,150 MW (megawatts), with a large portion coming from its thermal plants. It also operates a solar power plant in Gujarat.

• Power Plants: Some of its major power plants include:

  • Mundra Thermal Power Station (Gujarat)

  • Kawai Thermal Power Station (Rajasthan)

  • Tiroda Thermal Power Station (Maharashtra)

• Business Model: Adani Power's business model is centered on generating and selling electricity. It does this through a combination of long-term Power Purchase Agreements (PPAs) with state governments (such as Gujarat, Maharashtra, and Haryana) and by selling power on a merchant basis.

• Expansion: The company has ambitious expansion plans, with a target to increase its thermal power capacity to 41 GW by 2032. It is actively investing in new projects, including an 800 MW thermal power plant in Madhya Pradesh and a 570 MW hydroelectric project in Bhutan in partnership with Druk Green Power Corporation.

Historical Milestones

• 1996: The company was founded as a power trading company.

• 2009: Began power generation with its first unit at the Mundra plant, which grew to be one of the largest single-location coal-based power projects in India.

• 2014: Became the largest private power producer in India.

• 2024: Acquired Lanco Amarkantak.

Conclusion

The 570 MW Wangchhu hydroelectric project is more than just an energy partnership — it represents a strategic collaboration between India and Bhutan, rooted in sustainability and mutual growth. With its ₹6,000 crore investment, the project will generate employment, strengthen infrastructure, and expand clean energy trade between the two nations.

For Bhutan, it supports its ambitious goal of becoming a regional leader in hydropower and renewable energy by 2040. For India, it reinforces its commitment to regional energy security and partnerships with its Himalayan neighbor.

As construction begins in 2026, the project is set to become a symbol of India-Bhutan friendship while laying the foundation for future renewable energy collaborations across South Asia.