Adani Power shares gained 5% on September 8 after the firm said it will set up a 570 MW hydroelectric project in Bhutan.
Adani Power and Druk Green Power Corp. Ltd. (DGPC), Bhutan’s state-owned generation utility, on September 6 signed the Shareholders Agreement (SHA) for setting up a 570 MW Wangchhu hydroelectric project in the Himalayan Kingdom of Bhutan. An in-principle understanding on the Power Purchase Agreement (PPA) was also initialed, said the Adani Group firm.
At 10:33 am on September 8, Adani Power shares were trading 5% higher at Rs 640.15 apiece.
These agreements, signed in the presence of the Hon’ble Prime Minister of Bhutan, Dasho Tshering Tobgay and Gautam Adani, Chairman, Adani Group, pave the way for Adani Power and DGPC to initiate the implementation of the peaking run-of-river Wangchhu hydroelectric project on a BOOT (Build, Own, Operate, Transfer) model, said the company.
The Wangchhu project will see an investment of about Rs 6,000 crore in setting up the renewable energy power plant and related infrastructure. With the preparation of the detailed project report already completed, construction work is expected to begin by the first half of 2026, and the completion is targeted within five years of groundbreaking.
“Bhutan is a role model for the world in sustainable development, and we are very excited to play a leading role in the development of the country’s natural resources through this renewable energy project. The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro power generation is low. During the summer months, it would export power to India,” said SB Khyalia, CEO, Adani Power.
“Bhutan and India have, since the 1960s, worked closely together to harness the huge hydropower potential that Bhutan is endowed with. This cooperation in hydropower has immensely benefited both countries and is considered the cornerstone of the exemplary and friendly relations that the two countries enjoy. As Bhutan endeavors to become a High Income GNH (Gross National Happiness) Country within the next decade, access to reliable and affordable electricity from its renewable energy resources such as hydropower and solar will be critical to enable other investments to drive its economic growth. Bhutan therefore plans to add another 15,000 MW in hydropower and 5,000 MW in solar generation capacity by 2040. DGPC is therefore happy to be partnering with the Adani Group for establishing the 570 MW Wangchhu hydroelectric project. Considering their technical & financial strength and the immense experience and expertise that the Adani Group brings to the table, the project implementation is expected to be fasttracked and set a benchmark for other such projects. The project, on completion, will not only help ensure Bhutan’s energy security but also help further strengthen grid connectivity between Bhutan and India,” said Dasho Chhewang Rinzin, MD, DGPC.
The Wangchhu is the first hydroelectric project to be taken up under an MoU that was signed in May 2025 between the Adani Group and DGPC for jointly developing 5,000 MW of hydropower in Bhutan.
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