Reliance Power shares surged over 2% in early trade after the company signed a commercial term sheet for a long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL), a subsidiary of Bhutan’s Druk Holding and Investments Limited (DHI). As of 10:08 AM, the shares were trading 2.68% higher at Rs 46.28.
This milestone agreement paves the way for Bhutan’s largest solar power project — a 500 MW plant to be developed under a 50:50 joint venture between Reliance Power and DHI. The Build-Own-Operate (BOO) model project will see an estimated investment of INR 2,000 crore, marking the largest foreign direct investment (FDI) in Bhutan’s solar energy sector by a private entity.
Reliance Power has already initiated the EPC tendering process through international competitive bidding to ensure cost efficiency and high-quality execution. Financing discussions are underway with top financial institutions to secure long-tenor, sustainable project funding.
The project will be executed in phases over 24 months and is expected to significantly boost Bhutan’s solar capacity, reducing reliance on hydropower and supporting South Asia’s clean energy transition.
This initiative builds on the October 2024 strategic partnership between Reliance Enterprises (a JV of Reliance Power and Reliance Infrastructure) and DHI, which also includes the development of the 770 MW Chamkharchhu-I hydroelectric project.
With a clean energy pipeline of 2.5 GWp solar and 2.5 GWh Battery Energy Storage Systems (BESS), Reliance Power is strengthening its position as a major player in India’s renewable energy sector.
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