Reliance Power to Build Bhutan’s Largest Solar Project in 50:50 Venture with Druk Holding

New Delhi, May 19 — Reliance Power has entered into a landmark agreement with Green Digital Pvt Ltd, a subsidiary of Druk Holding and Investments Ltd (DHI), to develop Bhutan’s largest solar power project. The joint venture marks a 50:50 partnership between Reliance Power and DHI, the investment arm of the Royal Government of Bhutan.

According to a company statement released on Monday, the 500 MW solar project will be developed under a Build-Own-Operate (BOO) model and is expected to draw an investment of up to ₹2,000 crore. This represents the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date.

Key Highlights of the Project​

• Project Capacity: 500 MW
• Investment Size: Up to ₹2,000 crore
• Implementation Timeline: Over the next 24 months
• Model: Build-Own-Operate (BOO)
• Ownership Structure: 50:50 joint venture between Reliance Power and DHI

Reliance Power has initiated the Engineering, Procurement, and Construction (EPC) tendering process in line with international competitive bidding standards to ensure technical and cost efficiency. The company is also in discussions with top financial institutions to structure long-tenor, sustainable financing solutions to optimise the capital structure.

The solar power project is strategically aligned with Bhutan’s sustainability goals and is expected to surpass all existing solar installations in the country. It also aims to enhance regional clean energy integration and support cross-border infrastructure collaboration throughout South Asia.

Broader Partnership with Bhutan​

This solar initiative follows a strategic agreement signed in October 2024 between Reliance Enterprises (jointly promoted by Reliance Power Ltd and Reliance Infrastructure Ltd) and DHI. The agreement includes long-term cooperation in developing solar and hydropower assets in Bhutan.

Alongside the 500 MW solar project, the partnership will also oversee the execution and long-term operation of the 770 MW Chamkharchhu-I hydroelectric project. This run-of-the-river hydro asset will be developed under a long-term concession framework and forms a core part of Bhutan’s national energy strategy.

Boost to Bhutan’s Renewable Energy Mix​

By venturing into large-scale solar, the project is set to significantly diversify Bhutan’s renewable energy profile, which has traditionally been dominated by hydropower. It is also expected to improve the country’s grid stability and promote a balanced energy ecosystem for long-term sustainability.

This joint initiative marks a critical milestone in strengthening Indo-Bhutan energy cooperation and advancing regional energy transition goals.