Milestone Deal: Boosting Bhutan's Hydropower with India

Bhutan and the World Bank have finalized agreements for the Dorjilung Hydropower Project, a 1125 MW venture under a public-private model with Tata Power. The project aims to cover 80% of its output to India, enhancing regional energy security while providing economic benefits through affordable electricity and job creation.

In a significant move to strengthen regional energy security, Bhutan and the World Bank sealed financing deals amounting to USD 515 million for the Dorjilung Hydropower Project Ltd (DHPL). Developed by Tata Power and Druk Green Power Corporation, the project is set to become Bhutan's largest hydropower initiative under a public-private partnership.

Operated by a special purpose vehicle, DHPL is primarily owned by Druk Green Power Corporation with a 60% stake, while Tata Power holds the remaining 40%. The 1125 MW project will export nearly 80% of its 4500 GWh annual generation to India, addressing peak demand, especially during the summer months.

According to the World Bank, the project will substantially amplify clean energy cooperation between India and Bhutan. It will generate over 4500 GWh of electricity annually, providing surplus power for export, minimizing Bhutan's energy import costs, increasing export revenues, and promoting economic growth through job creation and access to affordable energy.