Adani Power and the Druk Green Power Corporation (DGPC) of Bhutan have formalised an agreement to develop the Chamkharchhu-I Hydroelectric Project, which has a capacity of 770 megawatts. The construction of the facility is scheduled to commence in the first half of 2027, with plans for commissioning within six years following the start of construction. This partnership is structured as a joint equity arrangement with a ratio of 49:51, where DGPC maintains a majority stake.

The project will utilise the Build, Own, Operate and Transfer (BOOT) model, entailing a 30-year concession period from the project’s commercial operational date. Located on the Chamkharchhu River in the Zhemgang District, it aims to bolster Bhutan’s electricity generation capabilities and foster regional energy collaboration.

Adani Power’s Managing Director, Anil Sardana, expressed that the project intends to alleviate Bhutan’s winter electricity demands and provide an opportunity to export excess power to India during the summer months. He emphasised the significant role hydropower is set to play in the energy transition throughout South Asia, enhancing energy security while contributing to sustainability objectives.

Previous Collaborations and Strategic Goals

The Chamkharchhu-I project represents the second significant partnership between Adani Power and DGPC, following the agreement for the 570 megawatts Wangchhu Hydroelectric Project, which was signed in September 2025. This ongoing collaboration is part of a larger ambition to develop up to 5,000 megawatts of hydropower capacity in Bhutan, an agreement that was established under a memorandum in May 2025.

DGPC Managing Director Dasho Chhewang Rinzin stated that the latest project aligns with the crucial need to enhance Bhutan’s energy security, particularly during the colder months. It also underscores the potential for exporting surplus clean energy to neighbouring India, creating a win-win scenario for both nations involved.

Furthermore, both parties have indicated their intention to explore additional hydropower projects within the scope of the overarching 5,000 megawatts development initiative. This suggests a commitment to expanding their cooperation further in Bhutan’s hydropower sector, reaffirming their strategic partnership.

Impact on Regional Energy Landscape

Across the board, the Chamkharchhu-I Hydropower Project is expected to enhance Bhutan’s capacity to generate electricity while also addressing seasonal energy demands effectively. By improving infrastructure and boosting capacity, the project is anticipated to play a vital role in meeting both domestic and regional energy needs.

This initiative also reinforces Bhutan’s position as a key player in South Asia’s hydropower landscape, which is critical for the region’s energy diversification and sustainability strategies. As countries seek to transition towards greener energy sources, such collaborative projects are essential in achieving broader regional energy goals.

Ultimately, the partnership between Adani Power and DGPC is indicative of a strategic effort that underscores the importance of sustainable development in the energy sector. The anticipated benefits are not just limited to power generation, but will also contribute to economic growth and strengthen ties between Bhutan and India, establishing a precedent for future collaborations in the energy sector.

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