Tata Power and Bhutan’s Druk Green Power Corporation Limited (DGPC) have expanded their clean energy partnership, increasing the total planned hydropower generation capacity under their collaboration to 5,033 MW from the earlier target of 4,500 MW.
According to a Tata Power press release, the two companies signed an amendment to their memorandum of understanding (MoU), originally signed on November 19, 2024, adding the 404 MW Nyera Amari I & II Integrated Hydropower Project to the existing project portfolio.
The expanded collaboration supports Bhutan’s long-term goal of increasing its national power generation capacity to 25,000 MW by 2040 as part of efforts to strengthen energy security and regional power integration.
The agreement amendment was signed in the presence of Bhutan Prime Minister Tshering Tobgay by Tata Power Chief Executive Officer and Managing Director Praveer Sinha and DGPC Managing Director Chhewang Rinzin.
Under the revised partnership, the two companies will jointly develop several major hydropower projects, including the 600 MW Khorlochhu project, the 1,125 MW Dorjilung project, the 2,540 MW Gongri Reservoir with Jeri Pumped Storage projects, the 364 MW Chamkharchhu IV project, and the newly added 404 MW Nyera Amari I & II project.
The partnership also includes plans to jointly develop 500 MW of solar photovoltaic projects in Bhutan.
Tata Power said construction activities have already begun on the Khorlochhu and Dorjilung hydropower projects, which together account for around 35 percent of the total planned 5 GW portfolio.
Praveer Sinha said the expanded collaboration reflects the scale and long-term ambition of the partnership between the two companies.
“The addition of the Nyera Amari project reflects the scale, ambition, and long-term commitment of this collaboration,” Sinha said. “This strategic partnership is not only pivotal for advancing Bhutan’s economic growth by unlocking its vast hydropower potential but also plays a critical role in enhancing regional energy security.”
He added that such cross-border clean energy partnerships are increasingly important for India, particularly during peak summer months when electricity demand reaches record highs.
DGPC Managing Director Chhewang Rinzin described the expanded agreement as a major milestone in Bhutan’s clean energy development strategy.
“This partnership will play a pivotal role in unlocking Bhutan’s vast hydropower potential, supporting economic growth, and strengthening regional energy security, while reinforcing Bhutan’s position as a leading clean energy nation,” Rinzin said.
According to Tata Power, the collaboration is one of the largest clean energy partnerships between Indian and Bhutanese power companies.
The two companies have maintained a partnership for more than 15 years, beginning with the 126 MW Dagachhu Hydropower Project commissioned in 2008, Bhutan’s first public-private hydropower project.