Adani Power and Druk sign agreement to build 770 MW hydroelectric power plant in Bhutan
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Business Standard
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Adani Power and Druk sign agreement to build 770 MW hydroelectric power plant in Bhutan

Adani Power has signed an agreement with Bhutan's state energy company, Druk Green Power Corp Ltd (DGPC), to implement the 770 MW Chamkharchhu-I hydropower project in the Kingdom of Bhutan.

According to the statement, Adani Power and DGPC signed a Shareholders Agreement (SHA) to launch this project. This project is the second major collaboration between the partners following the signing of the Wangchhu Hydroelectric Project agreement, which has a capacity of 570 MW, in September 2025. Furthermore, it falls under a broader Memorandum of Understanding (MoU) for hydropower development worth 5000 MW, signed between Adani Group and DGPC in May 2025.

The signing ceremony took place in the presence of the Prime Minister of Bhutan, Lhendi Dasho Tshering Tobgay, and other high-ranking officials. This 'run-of-river' type project will be located on the Chamkarchhu River in the central district of Zhemgang, Bhutan. It will be implemented under a Build, Own, Operate and Transfer (BOOT) model with a 49:51 equity partnership between Adani Power and DGPC, providing a concession period of 30 years from the date of commercial operation (COD).

The project aims to strengthen Bhutan's clean energy potential and improve regional energy cooperation. Construction is expected to begin in the first half of 2027, with commissioning planned within six years of the start of work. Anil Sardana, Managing Director of Adani Power Ltd., noted that hydropower will play a key role in accelerating the energy transition of South Asia, and this project will contribute significantly to enhancing energy security, reducing carbon intensity, and advancing common sustainable development goals. It will also allow for the export of surplus green energy to India during the summer months, creating long-term value for both countries.

Dasho Chewang Rinzang, CEO of DGPC, added that the 770 MW Chamkarchhu-I project will help strengthen Bhutan's energy security, especially during the winter months, and will also open up opportunities for optimizing and exporting surplus clean energy to India.

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The facility is situated in Gunhe County, within the Hainan Tibetan Autonomous Prefecture of Qinghai Province. It integrates a 900-megawatt photovoltaic station and a 100-megawatt molten salt solar thermal plant. According to The Paper, the solar thermal component utilizes 10,310 pentagonal heliostats with a total reflective area of about 500,000 square meters around a 219-meter high receiver tower, while the photovoltaic section employs approximately 1.9 million modules.

This project is part of China's second batch of large-scale wind and solar bases. During the day, the heliostats focus sunlight onto the receiver, heating the molten salt, which is then stored. When energy is required, the hot salt heats water into high-temperature, high-pressure steam, which drives a turbine. This allows the station to shift daytime solar energy to evening hours and cloudy periods, transforming renewable sources from weather dependency to demand-matching generation.

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The investment and operation of the project are carried out by POWERCHINA's new energy division, with POWERCHINA Northwest Engineering Corporation serving as the engineering, procurement, and construction contractor. Local meadows where sheep can graze have been preserved around the photovoltaic arrays. With the launch of the project, the Talatan area in Gunhe has become home to China's first three-tower solar thermal base, consisting of about 63,000 large mirrors forming three circular arrays of heliostats arranged in a triangle.

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