Tata Power to Develop 1,125 MW Hydroelectric Plant in Bhutan, 80% Power to Supply India

Tata Power has announced a major partnership with Druk Green Power Corporation Limited (DGPC) to develop a 1,125 MW hydroelectric power project in Bhutan. This cross-border clean energy initiative will strengthen regional energy security and boost India-Bhutan renewable energy cooperation.

Partnership and Project Structure

The project will be executed through a Special Purpose Vehicle (SPV), with DGPC holding 60% equity and Tata Power 40%. Upon completion, the SPV will become an associate company of Tata Power, enhancing its strategic presence in the Himalayan Renewable Energy Corridor.

Project Cost and Significance

• Total Project Cost: ₹13,100 crore

• Significance: Second-largest hydropower project in Darjeeling-Bhutan region and Bhutan’s largest Public-Private Partnership (PPP) in the hydro sector

• Cross-Border Cooperation: Supported by the World Bank, highlighting international collaboration in clean energy financing

Key Highlights

1. Regional Energy Security

   • 80% of the power generated will be supplied to India

   • Will improve availability of clean energy in the region

2. Largest PPP in Bhutan

   • ₹13,100 crore project cost marks Bhutan’s biggest PPP hydropower initiative to date

3. Cross-Border Financing

   • World Bank support underscores the importance of international cooperation in renewable energy development

4. Tata Power Expansion

   • Project completion will strengthen Tata Power’s strategic footprint in the Himalayan Renewable Energy Corridor

Timeline and Energy Supply

• Commercial Operations: Expected to begin by September 2031

• Power Distribution: 80% of electricity will be supplied to India

• Impact: Enhances regional energy security and supports clean power availability

Tata Power CEO’s Statement

Dr. Praveer Sinha, CEO & Managing Director of Tata Power, said:
"The Darjeeling project reinforces our commitment to accelerating clean energy development in the region. As Bhutan’s largest hydropower project under the PPP model, it is designed to meet Bhutan’s domestic energy needs while enabling India to import surplus clean power, strengthening regional energy security."

Conclusion

Tata Power’s collaboration with DGPC marks a significant milestone in cross-border renewable energy development. The 1,125 MW hydropower project in Bhutan will not only support Bhutan’s domestic energy demand but also supply clean energy to India, contributing to sustainable regional energy security.