India's Reliance Power and Bhutan’s DHI Partner to Develop Largest Solar Power Project in Bhutan
Reliance Power and Bhutan’s Druk Holding and Investments Ltd (DHI) have signed a long-term power purchase agreement to jointly develop Bhutan’s largest solar power project, a 500 MW plant valued at around USD 235 million. The project will be executed under a 50:50 joint venture on a Build-Own-Operate (BOO) basis and is expected to be completed in phases over the next two years. This initiative represents the largest private sector foreign direct investment in Bhutan’s solar energy sector to date.
The electricity generated will be sold to Green Digital Pvt. Ltd, a DHI-owned entity, under the long-term agreement. Reliance Power has begun the process of inviting bids for engineering, procurement, and construction (EPC) contracts through international competitive tendering to ensure technical excellence and cost efficiency. The company is also engaging with financial institutions to secure sustainable, long-term financing for the project.
This solar venture follows a broader strategic partnership established in October 2024 between Reliance Enterprises-a joint venture of Reliance Power and Reliance Infrastructure-and DHI, which also includes the development and operation of the 770 MW Chamkharchhu-I hydroelectric project. Reliance Power stated that the project underscores its commitment to expanding its renewable energy portfolio and strengthening India-Bhutan economic cooperation. The company currently has a clean energy pipeline of 2.5 gigawatts peak (GWp) in solar power and battery energy storage systems, making it a leading player in the integrated solar and storage segment in India.
The project is expected to play a key role in advancing regional clean energy integration and enhancing cross-border infrastructure collaboration in South Asia, contributing to Bhutan’s renewable energy capacity and sustainable development goals.
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