Adani Power and Bhutan Firm Sign Deal for 770-MW Hydropower Project

Adani Power shares rose 2% after the company signed an agreement with Bhutan's state-owned Druk Green Power Corporation to set up the 770-megawatt Chamkharchhu-I Hydroelectric Project in Bhutan.

Project Details

According to Business Standard, the peaking run-of-river project is located on the Chamkarchhu River in central Bhutan's Zhemgang District. It will be built under the Build, Own, Operate and Transfer model through a 49:51 equity partnership between Adani Power and Druk Green Power Corporation, with a 30-year concession from the commercial operation date. Construction is set to start in the first half of 2027, and commissioning is targeted within six years of groundbreaking. The signing event was attended by Bhutan Prime Minister Lyonchhen Dasho Tshering Tobgay and other dignitaries.

Wider Partnership

This project is the second major hydropower collaboration between the two partners, following an agreement for the 570-megawatt Wangchhu Hydroelectric Project signed in September 2025. It also falls under a wider 5,000-megawatt hydropower development Memorandum of Understanding signed between the Adani Group and Druk Green Power Corporation in May 2025.

Leadership Quotes

Anil Sardana, Managing Director of Adani Power, stated that hydropower will play a key role in accelerating South Asia's energy transition, helping enhance energy security, reduce carbon intensity, and export surplus green power to India during summer months. Dasho Chhewang Rinzin, Managing Director of Druk Green Power Corporation, added that the project will strengthen Bhutan's energy security during winter months while creating chances to export surplus clean energy to India.

Context

Bhutan has vast rivers and mountainous terrain that make it ideal for generating clean hydroelectric power, much of which is shared with neighbouring India. Cross-border energy partnerships help power-hungry economies secure steady renewable energy while boosting economic growth and green power trade in South Asia.