NEW DELHI: Reliance Power has signed a commercial term sheet with Bhutan’s Green Digital Pvt Ltd for a long-term power purchase agreement, marking a major milestone in cross-border clean energy collaboration. Green Digital is a subsidiary of Druk Holding and Investments Ltd (DHI), the investment arm of the Royal Government of Bhutan.
The agreement paves the way for the development of Bhutan’s largest solar power project, a 500 MW plant to be built under a 50:50 joint venture between Reliance Power and DHI. The project, with an estimated capital outlay of up to ₹2,000 crore, will be executed under a Build-Own-Operate (BOO) model and stands as the largest private sector foreign direct investment (FDI) in Bhutan’s solar sector to date.
Reliance Power stated that the initiative is expected to “play a pivotal role in advancing regional clean energy integration, and enhancing cross-border infrastructure collaboration across South Asia.”
To ensure technical excellence and cost efficiency, the company has initiated the Engineering, Procurement, and Construction (EPC) tendering process through international competitive bidding. It has also begun consultations with financial institutions to secure sustainable, long-tenor project financing, aiming to optimise the capital structure.
The solar project will be rolled out in phased tranches over the next 24 months and will align closely with Bhutan’s strategic sustainability roadmap and South Asia’s broader clean energy transition agenda.
The initiative is projected to surpass Bhutan’s current total solar generation capacity, significantly diversifying its renewable energy mix, which is currently dominated by hydropower. The project is also expected to boost grid stability and integration in the region.
In October 2024, Reliance Enterprises—a joint initiative by Reliance Power Ltd and Reliance Infrastructure Ltd—entered a strategic partnership with DHI to develop solar and hydroelectric projects in Bhutan. As part of that agreement, the two sides committed to developing the 500 MW solar power plant and jointly operating the 770 MW Chamkharchhu-I hydroelectric project, a run-of-the-river venture aligned with Bhutan’s long-term national energy goals.
(With input from agencies)
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