Wangchhu Hydroelectric Project
The Adani Group and Bhutan’s Druk Green Power Corporation (DGPC) signed a landmark agreement in 2025 to develop the 570 MW Wangchhu hydroelectric project. This initiative marks step in India-Bhutan energy collaboration. The project, valued at Rs 6,000 crore, will operate on a Build, Own, Operate, Transfer (BOOT) model. Construction is slated to begin in early 2026 and is expected to complete within five years.
Project Overview
The Wangchhu hydroelectric project is a run-of-river scheme located on the Wangchhu River in Bhutan’s Chukha District. The river is a key tributary of the Brahmaputra. The project will house four turbines, each with a capacity of 142.5 MW, collectively generating approximately 2,478.93 GWh annually. It aims to meet Bhutan’s peak winter electricity demand and export surplus power to India during summer months.
Strategic Partnership and Investment
This project is the first under a Memorandum of Understanding signed in May 2025 between Adani Power and DGPC to jointly develop 5,000 MW of hydropower capacity in Bhutan. The Rs 6,000 crore investment reflects a strong commitment to renewable energy development and cross-border cooperation. Further projects are under discussion, signalling a long-term partnership.
Economic and Energy Impact
Bhutan currently generates over 2,500 MW of hydroelectric power. The Wangchhu project will enhance energy security by addressing seasonal demand fluctuations. It supports Bhutan’s target of reaching 25,000 MW generation capacity by 2040. For India, it offers an opportunity to import clean energy, reducing dependence on fossil fuels.
Operational Model Benefits
The BOOT model allows Adani Power to build, operate, and own the project for a fixed period before transferring ownership to the Bhutanese government. This encourages private investment while safeguarding national interests. The project will generate employment and infrastructure development in the region.
Significance
Run-of-river projects like Wangchhu have a smaller ecological footprint compared to large dam reservoirs. The project aligns with sustainable development goals by promoting clean energy and regional cooperation. It also strengthens bilateral ties between India and Bhutan within the Himalayan region.
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