Tata Power, DGPC expand collaboration to develop additional 404 MW hydropower project in Bhutan

Tata Power and Druk Green Power Corporation have expanded their clean energy partnership with a new 404 MW hydro project in Bhutan. The deal raises their joint hydropower pipeline to over 5,000 MW, strengthening regional renewable energy cooperation and Bhutan’s long-term energy expansion goals

New Delhi/Thimphu: Tata Power and Bhutan’s Druk Green Power Corporation Ltd (DGPC) will develop an additional 404 MW hydroproject in the neighbouring country as part of their existing clean energy collaboration.

As per the original MoU signed on November 19, 2024, the parties had agreed to collaborate on the development of at least 4,500 MW hydropower projects in Bhutan.

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In a statement on Friday, Tata Power announced the signing of an amendment to its Memorandum of Understanding (MoU) with DGPC to expand their clean energy collaboration in Bhutan.

Under the amendment, a new 404 MW Nyera Amari I & II Integrated Hydropower Project has been added to the existing project pipeline. With this, the total identified hydropower capacity under the partnership increases to 5,033 MW from 4,500 MW earlier.

This is in line with Bhutan’s vision for its energy sector to reach an overall generation capacity of 25,000 MW by 2040.

Praveer Sinha, CEO & Managing Director, Tata Power, said, “The addition of the Nyera Amari project reflects the scale, ambition, and long-term commitment of this collaboration. 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.” For India, especially during peak summer months when demand continues to reach record highs, such partnerships ensure access to reliable, clean power, he added.

Dasho Chhewang Rinzin, MD, DGPC, said, “The inclusion of the 404 MW Nyera Amari I & II Integrated Hydropower Project, alongside key projects such as Khorlochhu (600 MW), Dorjilung (1,125 MW), Gongri Reservoir with Jeri Pumped Storage (2,540 MW), and Chamkharchhu IV (364 MW), reflects the scale and ambition of this collaboration.” “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 added.

On November 19, 2024, Tata Power and DGPC entered into a strategic partnership to identify hydropower and solar projects for joint development in Bhutan. The collaboration covers a portfolio of hydropower projects, including Khorlochhu (600 MW), Dorjilung (1,125 MW), Gongri Reservoir with Jeri Pumped Storage (2,540 MW combined), Chamkharchhu IV (364 MW), and now Nyera Amari I & II (404 MW).

It is the largest partnership between two of the leading power companies of the two nations in Asia’s clean energy sector.