Adani Group Partners with Bhutan’s DGPC to Develop 5,000 MW Hydropower Projects

In a big step towards clean energy, Adani Group has signed a Memorandum of Understanding (MoU) with Bhutan’s government-owned Druk Green Power Corporation (DGPC). The two companies will work together to build new hydropower and pumped storage projects with a total capacity of 5,000 megawatts (MW). This will double the size of their current joint venture.

Supported by Both Governments

The agreement has full support from both the Bhutanese and Indian governments, showing a strong commitment to regional energy cooperation and clean energy development. It aims to improve electricity generation using renewable sources and strengthen energy ties between the two countries. Click here to read more news.

Based on Existing Wangchhu Project

The new partnership builds on the Wangchhu Hydropower Project, which already has a planned capacity of 570/900 MW. In this project, DGPC owns 51% and Adani Group holds 49%. A shareholder agreement for this project has already been signed.

Step-by-Step Project Development

The MoU outlines a framework for selecting, planning, and building more projects over time. These projects will be developed in phases, based on detailed assessments. The agreement was signed in Bhutan, in the presence of high-ranking officials.

Export to India and Regional Energy Integration

The goal is to increase Bhutan’s ability to generate hydropower, while also exporting electricity to India. This partnership will help Bhutan become a key player in the region’s renewable energy market, giving it access to India’s large electricity grid.

This project is also part of Bhutan’s Renewable Energy Roadmap 2040, which targets 20,000 MW of installed renewable capacity through hydropower, solar, and geothermal energy. The roadmap encourages partnerships like this one and welcomes private investment. Click here to read more news.

DGPC to Lead Implementation

DGPC, Bhutan’s leading hydropower developer, will be in charge of carrying out the projects. With years of experience, DGPC is expected to play a major role in making the new hydropower plants a reality. The joint effort is seen as a way to boost energy security and sustainable economic growth for Bhutan.

Market Reaction and Investor Outlook

Even though this is a big move for Adani’s renewable energy goals, the company’s stock did not see a major rise after the announcement. At 1:20 PM, Adani Power shares were trading 2.20% lower at ₹508.75. Click here to read more news.

This lukewarm market response may be because the MoU is still a preliminary agreement, and not a final deal. Investors may be waiting for more information about the project’s structure, financing plans, and government approvals before reacting.

In earlier talks, some challenges had come up between Adani and DGPC—especially regarding ownership share and project control. For example, Adani had previously asked for a 70% majority share and a concession period of over 90 years, which was not accepted by Bhutan. Bhutan has a policy of keeping majority ownership in its hydropower assets.

So, while this new MoU marks an important shift for Adani in the clean energy sector, investors are likely waiting for more concrete updates before taking action.