Tata Power Company said it has entered into a strategic partnership with Druk Green Power Corporation (DGPC), to collaborate and develop at least 5,000 MW of clean energy generation capacity in Bhutan.

DGPC is a subsidiary of Druk Holding and Investments, sole generation utility of the mountain kingdom.

Through the collaboration, at least 5,000 MW of renewable energy projects, including 4,500 MW of hydropower comprising the 1,125 MW Dorjilung HEP, 740 MW Gongri Reservoir, 1,800 MW Jeri pumped storage, and 364 MW Chamkharchhu IV will be developed in phases together.

Another 500 MW of solar projects will be developed by Tata Power Renewable Energy.

As a precursor to this collaboration, Tata Power had recently acquired a 40 per cent stake in the 600 MW Khorlochhu Hydroelectric Project where an investment of over ₹6900 crore will be made to develop the project.

Tata Power and DGPC have a long-standing relationship since 2008 when the two companies joined forces to successfully develop the 126 MW Dagachhu Hydropower Plant as the first public private partnership in Bhutan’s hydropower sector. Tata Power also has a transmission project of a 1,200 km long Tala transmission line that evacuates clean power from Bhutan to India.

“This is in keeping with Bhutan’s vision for its energy sector which is to take its overall generation capacity to 25,000 MW by 2040 for its energy security and regional energy integration,” Tata Power said on the collaboration.

Bhutan aimed to achieve the target through diversification in its energy portfolio beyond traditional hydropower, including solar and geothermal energy. This will extend to diversifying project structuring and financing through such strategic partnerships.

This also marks the largest partnership between two of the leading power companies of the two nations in Asia’s clean energy sector and is expected to help unleash Bhutan’s potential for hydropower and its important role in ensuring energy security in the region.

The Memorandum of Understanding (MoU) was signed at Thimphu in Bhutan between Dasho Chhewang Rinzin, MD, DGPC and Praveer Sinha, CEO & MD, Tata Power, in the presence of the Prime Minister of Bhutan, Dasho Tshering Tobgay, Minister for Energy & Natural Resources, Lyonpo Gem Tshering, Chairman of Tata Sons, N. Chandrasekaran,  and Ambassador of India to Bhutan, Sudhakar Dalela.

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