Reliance Power to develop 500 MW solar project in Bhutan with DHI

Reliance Power Limited has signed a commercial term sheet for a long-term power purchase agreement (PPA) with Green Digital Private Limited (GDL), a subsidiary of Druk Holding and Investments Limited (DHI). DHI is the investment arm of the Royal Government of Bhutan.

The agreement outlines a 50:50 joint venture between Reliance Power and DHI to develop a 500 MW solar power project in Bhutan. With an estimated investment of up to Rs 20 billion, this marks the largest foreign direct investment in Bhutan’s solar sector so far.

The project will be developed under the build-own-operate model and will be implemented in phases over the next 24 months.

The agreement is aligned with Bhutan’s Renewable Energy Roadmap, which targets an additional 20,000 MW of generation capacity by 2040. The roadmap also seeks to diversify into solar and geothermal energy and encourages global partnerships to attract capital and technology. Hydropower accounts for over 99% of Bhutan’s electricity supply. It remains the country’s main energy source and a key contributor to export revenue.