Adani Power to develop 770MW hydropower project in Bhutan

Adani Power has signed an agreement with Bhutan’s state-owned Druk Green Power Corporation (DGPC) to develop a 770MW hydropower project in the Himalayan kingdom.

The shareholders’ agreement for the Chamkharchhu-I Hydroelectric Project was signed on Tuesday, according to a statement from Adani Power.

The project will be developed on the Chamkharchhu River in Zhemgang district in central Bhutan. Construction is expected to begin in the first half of 2027, with commissioning targeted within six years of the start of construction.

The peaking run-of-river project will be developed under a 49:51 equity partnership, with Adani Power holding a 49% stake and DGPC the remaining 51%.

The project will be implemented under a Build, Own, Operate and Transfer (BOOT) model, with a 30-year concession period from the date of commercial operation.

The project is expected to help meet Bhutan’s peak electricity demand during the winter, while surplus power will be exported to India during the summer months.

The agreement marks the second major hydropower collaboration between Adani Power and DGPC. The two companies signed an agreement for the 570MW Wangchhu Hydroelectric Project in September 2025.

The Chamkharchhu-I project is also part of a broader memorandum of understanding signed between Adani Group and DGPC in May 2025 to develop 5,000MW of hydropower projects in Bhutan.

Bhutanese Prime Minister Lyonchen Dasho Tshering Tobgay, Finance Minister Lekey Dorji and Energy and Natural Resources Minister Gem Tshering attended the signing ceremony.

Adani Power Managing Director Anil Sardana said surplus electricity from the project would be exported to India during the summer.

“Hydropower will play a pivotal role in accelerating South Asia’s energy transition, and this project will contribute significantly to enhancing energy security, reducing carbon intensity, and advancing shared sustainability goals,” Sardana said.

DGPC Managing Director Chhewang Rinzin said the project would strengthen Bhutan’s energy security during winter while creating opportunities to optimise and export surplus clean energy to India.