Reliance Power on Monday announced the signing of a commercial term sheet for a long-term Power Purchase Agreement (PPA) with Bhutan’s Green Digital Private Limited (GDL), a government-owned company. This partnership will lead to the development of Bhutan’s largest solar power project, with a total installed capacity of 500 MW.
In this joint 50:50 venture between Reliance Power and Druk Holding and Investments (DHI), the aim is to promote clean energy integration across South Asia. The collaboration represents a significant step forward in enhancing cross-border energy infrastructure and regional cooperation.
"The initiative is expected to play a pivotal role in advancing regional clean energy integration, and enhancing cross-border infrastructure collaboration across South Asia," the company said in a regulatory filing.
"The project entails a capital outlay of up to Rs 2,000 crore under Build-Own-Operate (BOO) model, representing the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date."
This investment positions the venture as a landmark moment for Bhutan, marking its largest private FDI in the solar energy space.
Reliance Power has initiated the tendering process for Engineering, Procurement, and Construction (EPC), adhering to global competitive bidding standards.This approach ensures cost-effective and technically sound project delivery.
"The company has also initiated engagement with financial institutions to structure sustainable, long-tenor project finance solutions, focused on optimizing capital structure and enhancing overall financing efficiency."
"The project will be implemented in phased tranches over the next 24 months, closely aligned with Bhutan’s strategic sustainability framework, and broader regional energy transition agenda across South Asia."
This phased approach will allow the project to integrate with Bhutan’s green energy goals and reinforce South Asia’s shift towards sustainable power sources.
Reliance Power continues to expand its renewable energy footprint. The company currently has a clean energy pipeline of 2.5 GWp solar and more than 2.5 GWhr of Battery Energy Storage Systems (BESS), demonstrating its strong commitment to a greener future.
In October 2024, Reliance Enterprises, a joint initiative of Reliance Power and Reliance Infrastructure, revealed a strategic alliance with Druk Holding and Investments Limited. This collaboration also aimed to develop both solar and hydropower projects in Bhutan, including the 500 MW solar project now moving into execution.
"Reliance Enterprises and Druk Holding and Investments will jointly develop a 500 MW solar power project."
Reliance Power Limited, part of the Reliance Group, is an Indian power generation and coal resources company established to develop, construct, and operate power projects both in India and internationally.
History and Incorporation: Incorporated on January 17, 1995, as Bawana Power Private Limited, the company's name changed several times before becoming Reliance Power Limited in July 2007.
Operational Capacity: Reliance Power has close to 6,000 MW of operational power generation assets, including both thermal and renewable energy sources.
Projects: The company develops power projects across different fuel types (coal, gas, hydro, and solar) and has a significant portfolio of projects in various stages. These projects are strategically located near fuel sources or load centers.
Operational Projects: Include the Sasan Ultra Mega Power Project (3,960 MW in Madhya Pradesh), Rosa Thermal Power Project (1,200 MW in Uttar Pradesh), and Butibori Thermal Power Project (600 MW in Maharashtra). The Dhirubhai Ambani Solar Park (40 MW) is its only currently operational renewable energy project.
Reliance Power is partnering with Druk Holding and Investments Ltd. to develop Bhutan's largest solar power project with a 500 MW capacity. This project involves a capital outlay of up to ₹2,000 crore.
A wholly-owned subsidiary, Reliance NU Suntech, signed a 25-year power purchase agreement with SECI to develop Asia's largest single-site integrated solar and battery energy storage system (BESS) project with 930 MW solar capacity and 465 MW/1,860 MWh BESS. This project entails an investment of up to ₹10,000 crore and is expected to be commissioned within 24 months.
Reliance Power’s new agreement with Bhutan's Green Digital Private Limited marks a crucial step in cross-border energy collaboration and the advancement of sustainable development in South Asia. With an investment of up to Rs 2,000 crore, the 500 MW solar power project stands out as Bhutan’s largest private sector FDI in renewable energy.
This Build-Own-Operate model signifies not just economic cooperation, but a strategic commitment to regional clean energy goals. Through phased implementation over the next two years, and adherence to international bidding and engineering standards, the project is poised for efficient execution. Moreover, Reliance Power’s engagement with financial institutions reflects a holistic approach to financing green infrastructure.
Coupled with its robust clean energy pipeline of 2.5 GWp solar and over 2.5 GWhr BESS, the company is reinforcing its leadership in the renewable sector. This venture underscores the increasing importance of collaborative energy solutions for a sustainable and interconnected South Asian future.