Tata Power, one of India’s largest integrated power companies, has entered into a strategic partnership with Druk Green Power Corporation Limited (DGPC), a subsidiary of Druk Holding and Investments Limited, which is the sole generation utility in Bhutan. The two companies will collaborate to develop at least 5,000 MW of clean energy generation capacity in Bhutan.
This partnership aligns with Bhutan’s long-term vision to expand its energy generation capacity to 25,000 MW by 2040, ensuring energy security while integrating with regional energy systems. Bhutan plans to achieve this target by diversifying its energy portfolio, moving beyond traditional hydropower to include solar and geothermal energy. The partnership with Tata Power will play a key role in this diversification.
With the support of the Royal Government of Bhutan and the Government of India, this is set to be the largest partnership between the leading power companies of both nations in Asia’s clean energy sector. The companies have a longstanding collaboration, having worked together for over 15 years.
The Memorandum of Understanding (MoU) for this partnership was signed in Thimphu, Bhutan, in the presence of distinguished officials including Dasho Chhewang Rinzin, MD – DGPC, Dr. Praveer Sinha, CEO & Managing Director – Tata Power, Hon’ble Prime Minister of Bhutan Dasho Tshering Tobgay, Minister for Energy & Natural Resources Lyonpo Gem Tshering, Chairman of Tata Sons Mr. N. Chandrasekaran, Ambassador of India to Bhutan Mr. Sudhakar Dalela, and other senior officials from the Royal Government of Bhutan, DGPC, and Tata Power.
The strategic partnership will focus on the development of renewable energy projects including 4,500 MW of hydropower, 2,500 MW of pumped storage, and 500 MW of solar energy. The projects will ensure a round-the-clock energy supply to both Bhutan and India. Notable projects within the collaboration include the 1,125 MW Dorjilung Hydroelectric Project, 740 MW Gongri Reservoir, 1,800 MW Jeri Pumped Storage, and 364 MW Chamkharchhu IV. In addition, Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, will develop 500 MW of solar projects.
As a precursor to the partnership, Tata Power recently acquired a 40% stake in the 600 MW Khorlochhu Hydroelectric Project, with an investment of over Nu/INR 69 billion.
Tata Power has been a key player in Bhutan’s energy sector since 2008 when it helped develop the 126 MW Dagachhu Hydropower Plant—the first public-private partnership in Bhutan’s hydropower sector. Tata Power also operates a transmission project involving a 1,200 km-long Tala transmission line, evacuating clean power from Bhutan to India.
Tata Power’s leadership in the renewable energy space
Tata Power has established itself as a leader in renewable energy with a portfolio of 12.9 GW (6.4 GW operational, 6.5 GW under construction), making up 42% of its total capacity. By 2030, Tata Power aims to expand its renewable energy portfolio to 70%. The company is committed to supporting India’s energy transition and its goal of achieving carbon neutrality by 2045.
Dr. Praveer Sinha, CEO & Managing Director of Tata Power, emphasized the importance of the partnership: “Tata Power’s partnership with Druk Green Power Corporation reinforces our credentials as the most preferred clean energy partner in the region. Together, we are building 5,000 MW of clean energy capacity that will help harness Bhutan’s hydropower potential and support both countries’ growing energy demands with reliable and round-the-clock clean energy supply.”
Bhutan’s renewable energy potential
Bhutan’s economy is expected to grow by 7.2% in FY25, leading to increased energy demand. Hydropower plays a vital role in Bhutan’s economy and is crucial in meeting these growing energy requirements. The renewable energy resources of Bhutan, particularly hydropower, complement India’s peak summer demand, ensuring a reliable supply of power across both countries.
With a growing energy demand, Bhutan’s focus on clean energy projects also includes the creation of green jobs and the development of energy infrastructure, which will provide significant economic benefits. The partnership will also facilitate regional energy integration, boosting investments in Bhutan’s hydropower sector.
