Adani Power Ltd. and Druk Green Power Corp. Ltd. (DGPC), Bhutan’s state-owned generation utility, have signed the Shareholders Agreement (SHA) for setting up a 570 MW Wangchhu hydroelectric project in Bhutan.
An in-principle understanding on the Power Purchase Agreement (PPA) has also been signed.
The developers have also signed the Concession Agreement (CA) for the project with the Royal Government of Bhutan.
These agreements will pave the way for Adani Power and DGPC to initiate the implementation of the peaking run-of-river Wangchhu hydroelectric project on a BOOT (Build, Own, Operate, Transfer) model.
The Wangchhu project will see an investment of about ?6,000 crore in setting up the renewable energy power plant and related infrastructures. With the preparation of the detailed project report already completed, construction work is expected to begin by the first half of 2026, and the completion is targeted within five years of groundbreaking, Adani Power said on Saturday.
“The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro power generation is low. During the summer months, it would export power to India,” said SB Khyalia, CEO, Adani Power.
“Considering their technical and financial strength and the immense experience and expertise that the Adani Group brings to the table, the project implementation is expected to be fast-tracked and set a benchmark for other such projects. The project, on completion, will not only help ensure Bhutan’s energy security but also help further strengthen grid connectivity between Bhutan and India,” said Dasho Chhewang Rinzin, MD, DGPC.
The Wangchhu is the first hydroelectric project to be taken up under an MoU that was signed in May 2025 between the Adani Group and DGPC for jointly developing 5,000 MW of hydropower in Bhutan.
Adani Group and DGPC are engaged in further discussions for future projects under this strategic partnership, the company said.
