Adani Power and DGPC sign agreements for 570 MW hydro project in Bhutan

Adani Power and Druk Green Power Corporation Ltd. (DGPC) have formalised agreements with the Royal Government of Bhutan to develop the 570 MW Wangchhu hydroelectric project, with construction expected to begin in 2026.

The Shareholders Agreement for the project was signed between Adani Power and DGPC, alongside the initialling of the Power Purchase Agreement. The Concession Agreement with the Royal Government of Bhutan was also concluded. The signing took place in the presence of Bhutan’s Prime Minister Dasho Tshering Tobgay and Adani Group Chairman Gautam Adani.

The Wangchhu project is designed as a peaking run-of-river hydroelectric plant to be developed under a Build, Own, Operate, Transfer model. The estimated investment for the project is about INR 60 billion, covering the power plant and associated infrastructure. The detailed project report has been completed, and work is scheduled to commence by the first half of 2026. Commissioning is targeted within five years of construction start.

Adani Power CEO SB Khyalia said the project would help Bhutan meet its peak winter electricity demand and allow surplus summer generation to be exported to India.

The new project follows the completion of the 1,020 MW Punatsangchhu-II hydroelectric project in August 2025, which increased Bhutan’s installed capacity by around 40 per cent to more than 3,500 MW. The project is expected to generate about 4,357 GWh annually.

Hydropower remains central to Bhutan’s economy, with Druk Green Power Corporation operating all major generation assets and the sector accounting for most of the country’s electricity exports to India.