Tata Power has entered a memorandum of understanding (MoU) with Druk Green Power (DGPC) to develop at least 5GW of clean energy generation capacity in Bhutan.

The proposed 5GW capacity includes 4.5GW of hydropower, and features projects such as the 1.1GW Dorjilung HEP [hydroelectric power], the 740MW Gongri reservoir, the 1.8GW Jeri pumped storage and the 364MW Chamkharchhu IV.

Tata Power Renewable Energy also plans to establish 500MW of solar projects.

The development is part of Bhutan’s plans to diversify its energy mix beyond traditional hydropower to include solar and geothermal sources.

The strategy involves diversifying project structuring and financing through strategic partnerships.

This collaboration is supported by the governments of Bhutan and India.

Tata Power managing director and CEO Dr Praveer Sinha stated: “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 5GW 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. Together we are shaping a new energy era.”

Tata Power’s relationship with DGPC dates back to 2008, with the successful development of the 126MW Dagachhu hydropower plant, marking the first public-private partnership in Bhutan’s hydropower sector.

DGPC managing director Dasho Chhewang Rinzin stated: “This strategic partnership with Tata Power is in keeping with Bhutan’s aspirations to maximise benefits to the people of Bhutan through fast-tracking the harnessing of its huge renewable energy resources for its economic development and long-term energy security.

“Bhutan places a lot of confidence in Tata Power and the partnership to deliver on these expectations.”

In August 2024, Tata Power formed a strategic partnership with Bhutan’s Druk Green Power for the development of the 600MW Khorlochhu hydropower project.