Bhutan’s DGPC ties up with Indian firm for solar and hydro projects

Druk Green Power Corporation (DGPC), Bhutan’s state owned renewable energy utility, has signed a Memorandum of Understanding (MoU) with Kolkata based Carbon Resources Private Limited (CRPL) to jointly develop new solar and hydropower projects in the country. The partnership signals faster progress in Bhutan’s renewable energy expansion plans.

The MoU was signed in the presence of Bhutan’s Minister for Energy and Natural Resources, Lyonpo Gem Tshering. Under the agreement, the two companies will work on projects with capacities ranging from 100 MW to 250 MW. DGPC will share project data, historical studies and regulatory inputs to enable CRPL to carry out technical, commercial and financial assessments.

Projects identified under the partnership will be implemented through one or more Special Purpose Vehicles (SPVs) set up in Bhutan as joint ventures. The proposed financing structure provides for a 70:30 debt to equity ratio between DGPC and CRPL.

The collaboration aligns with Bhutan’s national goal of reaching 25 GW of installed generation capacity by 2040. At present, the country has around 2.5 GW of installed capacity, largely based on hydropower. The government has indicated that MoUs covering more than 12 GW of generation capacity have already been signed.

Bhutan is also expanding its solar programme. The country commissioned its first utility scale solar plant of 17.38 MW in July 2024. In August, a consortium was awarded the 120 MW Jamjee solar project. DGPC is also advancing a tender for the 120 MW Wobthang solar project, with an award expected by June 2026 and commissioning planned for the first half of 2028. National policy targets the addition of 5 GW of solar capacity by 2040.

Recently, the World Bank has approved long term financing for the 1,125 MW Dorjilung Hydropower Project, which is being developed as a joint venture between Tata Power and DGPC under a public private partnership framework.

DGPC is Bhutan’s main power generation company and manages the country’s hydropower assets. The partnership with CRPL reflects Bhutan’s efforts to diversify its renewable energy mix and attract private sector participation alongside international expertise.