New Bhutan Hydro Project
Adani Power and Bhutan Utility Partner to Develop 770-MW Hydropower Project
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Key Points
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The project had previously been assigned to Reliance Power under a 2024 strategic agreement, but was reallocated to Adani Power after Reliance withdrew from Bhutan’s clean-energy pipeline.
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Bhutan Prime Minister Tshering Tobgay oversaw the shareholders agreement signing ceremony on October 5, 2026.
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The project company is to issue 4.9 million shares to Adani Power and 5.1 million to DGPC, at BTN 100 per share; each partner may appoint three directors.
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Adani Power Managing Director Anil Sardana said the project would help strengthen South Asian energy security, reduce carbon intensity and advance shared sustainability goals.
Adani Power and Bhutan's state-owned Druk Green Power Corporation have signed a deal to jointly build a 770-megawatt hydropower plant in Bhutan's Zhemgang District. Business Today reports that Adani Power shares rose 2.34% on the announcement. The Bhutanese utility will own 51% of the project while Adani Power holds 49%, with construction set to begin in early 2027.
The Chamkharchhu-I plant is a run-of-river facility designed to meet Bhutan's winter electricity demand and export power to India during summer months. Financial Express notes the project will operate under a 30-year build-own-operate-transfer concession, with full commissioning expected within six years. This is the second major partnership between the two companies, following their earlier Wangchhu project agreement.
Adani Takes Over Project After Reliance Withdrawal
The Chamkharchhu-I project was originally assigned to Reliance Power under a 2024 strategic agreement with Bhutan. OneIndia reports that Reliance later withdrew from Bhutan's clean-energy pipeline, prompting officials to reallocate the high-value project to Adani Power. The shift reflects shifting dynamics in South Asia's renewable energy landscape and Adani's growing footprint in the region.
Ownership Structure and Project Governance
The project company will issue shares at 100 Bhutanese ngultrum per share, with Adani Power receiving 4.9 million shares and Bhutan's Druk Green Power Corporation receiving 5.1 million shares. TNDIndia reports that each partner will appoint three board directors to oversee development and operations. Bhutan Prime Minister Tshering Tobgay oversaw the shareholders agreement signing ceremony on October 5, 2026.
Strengthening South Asian Energy Security
Adani Power Managing Director Anil Sardana said the project would strengthen regional energy security while reducing carbon intensity across South Asia. The 770-megawatt plant fits into Bhutan's broader vision to develop 5,000 megawatts of hydropower capacity. Northeast Live TV notes the peaking run-of-river design optimizes seasonal electricity generation, positioning Bhutan as a renewable energy exporter to the region.
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