Tata Power & Druk Green Power Collaborate on 5,000 MW Green Energy Project in Bhutan

Tata Power has entered into a strategic partnership with Druk Green Power Corporation Ltd (DGPC) to develop at least 5,000 MW of clean energy generation capacity in Bhutan. This collaboration aims to harness Bhutan’s vast hydropower potential and contribute to the region’s energy security and sustainability. The initiative aligns with Bhutan’s vision to diversify its energy portfolio and improve regional energy integration. 

Partnership Overview

• Tata Power partners with DGPC, a subsidiary of Druk Holding and Investments Ltd, Bhutan’s government-owned company.
• Focus on developing 5,000 MW of clean energy capacity in Bhutan, including both hydropower and solar projects.

Target Projects

Hydropower

• 4,500 MW through several key projects:
• 1,125 MW Dorjilung Hydro Project
• 740 MW Gongri Reservoir
• 1,800 MW Jeri Pumped Storage Project
• 364 MW Chamkharchhu IV

Solar Energy

• Tata Power Renewable Energy Ltd (TPREL) will develop 500 MW of solar power capacity.

Bhutan’s Energy Vision

• Bhutan plans to raise its total power generation capacity to 25,000 MW by 2040 (up from 2,300 MW).
• The country seeks diversification beyond hydropower, including solar and geothermal energy, to meet its growing energy needs.

Strategic Benefits

• The partnership will harness Bhutan’s natural hydropower resources, benefiting both countries’ energy demands.
• Key infrastructure development will ensure reliable and sustainable clean energy supply to the region.
• The project supports Bhutan’s economic development and long-term energy security.

Recent Developments

• Hydroelectric Projects: Tata Power acquired a 40% stake in the 600 MW Khorlochhu Hydroelectric Project.
• The partnership builds on a long-standing relationship, including the successful 126 MW Dagachhu Hydropower Plant in Bhutan (a public-private partnership).

Regional Energy Integration

• Bhutan’s hydropower is crucial in balancing energy demands in India and neighboring regions.
• With investments in renewable energy, the partnership contributes to India’s energy security and sustainability, complementing India’s growing renewable energy investments.

Key Figures Involved

• MoU signed in Thimphu in the presence of Bhutanese Prime Minister Dasho Tshering Tobgay, Tata Sons Chairman N. Chandrasekaran, and other senior officials.

• Praveer Sinha (CEO of Tata Power) and Dasho Chhewang Rinzin (MD of DGPC) lead the collaboration efforts.

Summary/Static	Details
Why in the news?	Tata Power and Druk Green Power Corporation (DGPC) to develop 5,000 MW of clean energy in Bhutan.
Main Focus Areas	4,500 MW Hydropower, 500 MW Solar Energy
Key Hydropower Projects	– Dorjilung Hydro (1,125 MW) – Gongri Reservoir (740 MW) – Jeri Pumped Storage (1,800 MW) – Chamkharchhu IV (364 MW)
Solar Energy Projects	Tata Power Renewable Energy Ltd (TPREL) to develop 500 MW
Bhutan’s Energy Vision	Raise power generation capacity to 25,000 MW by 2040, diversify energy portfolio (solar, geothermal).
Strategic Benefits	– Reliable clean energy supply – Economic development – Strengthening regional energy integration
Regional Impact	– Complementing India’s renewable energy efforts – Boosting energy security in Bhutan and the region