Tata Power, DGPC Expand Bhutan Clean Energy Partnership to Over 5 GW Hydropower Capacity

Tata Power has announced the signing of an amendment to its Memorandum of Understanding (MoU) with Druk Green Power Corporation (DGPC) to expand their clean energy collaboration in the Kingdom of Bhutan. As per the original MoU dated November 19, 2024, the Parties have decided to collaborate for the development of at least 4,500 MW Hydropower Projects in Bhutan.

 As per the amendment, a new 404 MW Nyera Amari I and II Integrated Hydropower Project has been identified and added to the existing project pipeline. With this, the total identified hydropower capacity under the partnership increases to 5,033 MW from 4,500 MW earlier. This is in line with Bhutan’s vision for its energy sector to take overall generation capacity to 25,000 MW by 2040 for its energy security and regional energy integration. 

This extension in strategic partnership signifies Tata Power's pre-eminence as the most preferred clean energy partner not only in India but also as a regional leader. It will help unleash Bhutan’s great potential for hydropower and its important role in ensuring energy security in the region.

 The amendment to the MoU took place in the august presence of Prime Minister of Bhutan Lyonchhen Tshering Tobgay. The agreement was formally signed by Dr Praveer Sinha, CEO and Managing Director, Tata Power and Chhewang Rinzin, Managing Director, Druk Green Power Corporation (DGPC). Also present at the ceremony were Anjali Pandey, President – Generation Business, Tata Power and senior officials from DGPC and DHPC.

Dr Praveer Sinha, CEO and Managing Director, Tata Power said, “This milestone of expanding our joint hydropower portfolio to over 5,000 MW with DGPC marks a step in strengthening our clean energy partnership in Bhutan. The addition of the Nyera Amari project reflects the scale, ambition and long-term commitment of this collaboration. This strategic partnership is not only pivotal for advancing Bhutan’s economic growth by unlocking its vast hydropower potential but also plays a critical role in enhancing regional energy security. For India, especially during peak summer months when demand continues to reach record highs, such partnerships ensure access to reliable, clean power.”

The projects will be developed with mutually agreed equity participation. Both companies will continue to evaluate and add new hydropower opportunities over time.

Dasho Chhewang Rinzin, MD, DGPC, said, “The expansion of our partnership with Tata Power to over 5000 MW hydropower portfolio marks a defining milestone in Bhutan’s clean energy journey. The inclusion of the 404 MW Nyera Amari I and II Integrated Hydropower Project, alongside key projects such as Khorlochhu (600 MW), Dorjilung (1,125 MW), Gongri Reservoir with Jeri Pumped Storage (2,540 MW) and Chamkharchhu IV (364 MW), reflects the scale and ambition of this collaboration. This partnership will play a pivotal role in unlocking Bhutan’s vast hydropower potential, supporting economic growth and strengthening regional energy security, while reinforcing Bhutan’s position as a leading clean energy nation.”

On 19 November 2024, with the support of the Royal Government of Bhutan and the Government of India, Tata Power and DGPC entered a strategic partnership with the intent to identify hydropower and solar projects for joint development in Bhutan.

The collaboration covers a portfolio of hydropower projects, including Khorlochhu (600 MW), Dorjilung (1,125 MW), Gongri Reservoir with Jeri Pumped Storage (2,540 MW combined), Chamkharchhu IV (364 MW), and now Nyera Amari I and II (404 MW). This has become the largest partnership between two of the leading power companies of the two nations in Asia's clean energy sector. Both companies have a stellar track record in the energy sector, and a long-standing relationship having worked together for over 15 years.

In addition, Tata Power and DGPC also aim to jointly develop 500 MW of solar PV projects in Bhutan.

Work has already commenced on the Khorlochhu (600 MW) and Dorjilung (1,125 MW) hydropower projects, together accounting for approximately 35 percent of the committed portfolio of 5 GW

Tata Power’s association with DGPC spans over a decade, beginning with the 126 MW Dagachhu Hydropower Project, which was Bhutan’s first public–private hydropower partnership, commissioned in 2008.