Adani Power, DGPC Sign 770 MW Bhutan Hydropower Pact

Adani Power and Bhutan’s state-owned Druk Green Power Corporation Ltd (DGPC) signed a Shareholders Agreement on 5 October 2026 to develop the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan. The project is a peaking run-of-river hydropower facility on the Chamkharchhu River in Zhemgang district of central Bhutan.

Project location and design

The Chamkharchhu-I Hydroelectric Project is planned as a run-of-river scheme with peaking capability. Run-of-river projects use river flow for generation, and peaking facilities can store and release water to meet higher demand periods. The project site is in Zhemgang district, which is located in central Bhutan.

Equity structure and implementation model

The project will follow a 49:51 equity partnership. Adani Power will hold 49% equity, and DGPC will hold 51% equity. The project will be implemented under the Build, Own, Operate and Transfer (BOOT) model, which is a public-private arrangement used for infrastructure development. The concession period will be 30 years from the date of commercial operation.

Timeline and related Bhutan hydropower projects

Construction is expected to begin in the first half of 2027. Commissioning is targeted within six years of groundbreaking. The Chamkharchhu-I project is the second major hydropower collaboration between Adani Power and DGPC after the 570 MW Wangchhu Hydroelectric Project agreement signed in September 2025. It is also part of a broader 5,000 MW hydropower development Memorandum of Understanding signed between the Adani Group and DGPC in May 2025.

Important Facts for Exams

• Bhutan is a Himalayan country with a strong focus on hydropower-based electricity generation.
• Run-of-river hydropower projects depend on river flow and usually have limited reservoir storage.
• The BOOT model stands for Build, Own, Operate and Transfer.
• DGPC is Bhutan’s state-owned generation utility and a subsidiary of Druk Holding & Investments.

Energy trade and bilateral context

The project is linked to Bhutan’s winter electricity demand and the export of surplus green power to India during summer months. Bhutan and India have a long-standing hydropower cooperation framework, and cross-border electricity trade remains a key feature of their energy partnership.

Institutional background

Druk Green Power Corporation Ltd is Bhutan’s leading renewable energy generation company. Druk Holding & Investments is the commercial arm of the Royal Government of Bhutan.