Tata Power, Bhutan’s Druk Green Power Corp to develop 5,000 MW clean energy projects

The collaboration marks the largest partnership between two of the leading power companies of the two nations in Asia’s clean energy sector. Representational file image.
| Photo Credit: Reuters

Tata Power on Tuesday (November 19, 2024) said it has entered into a strategic partnership with Bhutan’s Druk Green Power Corporation Ltd (DGPC) for the development of 5,000 MW of clean energy capacity in the Himalayan nation.

DGPC, is a subsidiary of Druk Holding and Investments Ltd, the sole generation utility of Bhutan.

The collaboration marks the largest partnership between two of the leading power companies of the two nations in Asia’s clean energy sector, Tata Power said in a statement.

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 (hydro-electric project); 740 MW Gongri Reservoir; 1,800 MW Jeri Pumped Storage; and 364 MW Chamkharchhu IV will be developed in phases, the statement said.

Another 500 MW of solar projects will be developed by Tata Power Renewable Energy Ltd (TPREL), a subsidiary of Tata Power.

“Tata Power’s partnership with Druk Green Power Corporation reinforces our credentials as the most preferred clean energy partner in the region. Together, we are building 5000 MW of clean energy capacity that will help harness Bhutan’s hydropower potential and support both countries’ growing energy demands with reliable and round-the-clock clean energy supply. Together we are shaping a new energy era,” Praveer Sinha, CEO & MD, Tata Power, said.

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

“This strategic partnership with Tata Power is in keeping with Bhutan’s aspirations to maximize benefits to the people of Bhutan through fast-tracking the harnessing of its huge renewable energy resources for its economic development and long-term energy security,” Dasho Chhewang Rinzin, MD, DGPC said.

Tata Power has had a long-standing relationship with DGPC 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 1,200-km long Tala transmission line that evacuates clean power from Bhutan to India.

As a precursor to this collaboration, Tata Power recently acquired a 40 per cent stake in the 600 MW Khorlochhu Hydroelectric Project.

Tata Power has a robust clean and green portfolio crossing 12.9 GW (6.4 GW operational, 6.5 GW under construction) which constitutes 42 per cent of its total capacity, and is well-positioned to expand this to 70 per cent by 2030.

Bhutan’s hydropower generation which peaks during the monsoon months complements India’s demand patterns that also peak in the summer months.

More importantly, Bhutan sees its hydropower as critical in ensuring round-the-clock availability of power with India’s huge investments in renewables such as solar and wind and the plans to further accelerate investments in these renewables over the next two decades.

DGPC has a portfolio of 2,453 MW of Hydro capacity in Bhutan, a large percentage of which is being exported to India, especially during the monsoon months. DGPC is envisioned to achieve 5,500 MW Hydro capacity within the next 5 years timeline including investments & development of Small Hydro and solar Projects.