Reliance Power Limited has signed a commercial term sheet for a long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL), a subsidiary of Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan. This agreement marks a key development in advancing cross-border clean energy infrastructure between India and Bhutan.
Under a 50:50 joint venture between Reliance Power and DHI, Bhutan’s largest solar power project will be developed with an installed capacity of 500 MW. The project will follow a Build-Own-Operate (BOO) model with a planned capital investment of up to INR 2,000 crore. It represents the largest foreign direct investment (FDI) in Bhutan’s solar energy sector by a private company.
Reliance Power has initiated the Engineering, Procurement, and Construction (EPC) tendering process using international competitive bidding standards. This approach is intended to ensure technical efficiency and cost competitiveness. The company is also in discussions with financial institutions to structure long-tenor, sustainable project financing options.
The solar project will be executed in multiple phases over the next 24 months and is designed to align with Bhutan’s national sustainability goals and the broader regional clean energy transition in South Asia. Once operational, it will significantly increase Bhutan’s solar generation capacity and support the diversification of its renewable energy sources beyond hydropower.
This initiative follows the October 2024 strategic partnership agreement between Reliance Enterprises — jointly promoted by Reliance Power and Reliance Infrastructure — and Druk Holding and Investments Limited. In addition to the 500 MW solar project, the agreement includes the long-term development and operation of the 770 MW Chamkharchhu-I hydroelectric project, structured under a concession model in line with Bhutan’s energy strategy.
With this project, Reliance Power continues to expand its renewable energy footprint. Its clean energy pipeline currently includes 2.5 GWp of solar capacity and over 2.5 GWh of Battery Energy Storage Systems (BESS), positioning it as a leading player in India’s integrated Solar + BESS segment.
