Bhutan Hydropower and Power Exports — 2026-10-08
Adani Power and Bhutan’s state-owned Druk Green Power Corporation (DGPC) have signed a major shareholders’ agreement to develop the 770 MW Chamkharchhu-I hydropower project, marking a significant expansion in bilateral energy cooperation. The project, structured on a 49:51 equity split with DGPC holding majority control, is scheduled for construction commencement in early 2027, aiming to boost energy security and surplus power exports to India. <!-- /headline --> Adani Power and Bhutan’s DGPC seal 770 MW hydro pact for 2027 start <!-- /headline -->
Bhutan Hydropower and Power Exports — 2026-10-08
Adani Power and Bhutan’s state-owned Druk Green Power Corporation (DGPC) have signed a major shareholders’ agreement to develop the 770 MW Chamkharchhu-I hydropower project, marking a significant expansion in bilateral energy cooperation. The project, structured on a 49:51 equity split with DGPC holding majority control, is scheduled for construction commencement in early 2027, aiming to boost energy security and surplus power exports to India.
<!-- /headline -->Adani Power and Bhutan’s DGPC seal 770 MW hydro pact for 2027 start
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Adani Power and DGPC Sign 770 MW Chamkharchhu-I Pact
On October 6, 2026, Adani Power and Bhutan’s Druk Green Power Corporation (DGPC) signed a Shareholders Agreement (SHA) in Thimphu for the development of the 770 MW Chamkharchhu-I Hydroelectric Project. The joint venture operates on a 49:51 equity split, with DGPC retaining majority control while Adani Power holds a minority stake. This collaboration is designed to enhance Bhutan’s energy security and facilitate the export of surplus power to India, reinforcing the long-standing bilateral energy framework.
Construction Timeline and Export Strategy
Construction of the Chamkharchhu-I project is expected to begin in the first half of 2027, with commissioning anticipated six years later. The project is critical for meeting Bhutan’s rising domestic demand while maintaining its role as a key power exporter to India. The agreement underscores a shift towards private sector participation in Bhutan’s hydropower sector, complementing traditional inter-governmental projects.
Strengthening India-Bhutan Energy Ties
The signing of the SHA was highlighted as a key moment in strengthening India-Bhutan hydropower cooperation. Indian media reported that this deal reflects deepening strategic ties, with the project expected to contribute significantly to India’s energy mix during peak demand seasons. The BOOT (Build-Own-Operate-Transfer) model adopted for this project aims to mitigate financial risks for Bhutan while ensuring timely execution.
Local view
Local Hindi-language media outlets such as The Print Hindi and Economic Times Hindi have extensively covered the agreement, emphasizing the strategic importance of the deal for regional energy stability. Reports highlight that this partnership allows Bhutan to leverage private capital for infrastructure development while securing guaranteed off-take agreements for power exports to India. Pratahkal noted that the project will help balance seasonal power flows, with Bhutan exporting surplus power to India during warmer months and importing during winter peaks.
Context & numbers
- Project Capacity: 770 MW.
- Equity Split: DGPC (51%), Adani Power (49%).
- Construction Start: First half of 2027.
- Commissioning: Expected 6 years after construction start (approx. 2033).
- Current DGPC Capacity: DGPC currently operates 2,471 MW of hydropower capacity across Bhutan.
On the radar
- Gelephu Mindfulness City: Continued interest in data center investments, including a preliminary agreement by Sato Technologies for a 100MW AI data center, which will rely on Bhutan’s hydropower grid.
- Debt Sustainability: Ongoing scrutiny of Bhutan’s foreign debt profile, which remains heavily tied to India-funded hydropower projects, though new private-sector models like Chamkharchhu-I aim to diversify financing sources.
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