Adani Power, DGPC to Build 570 MW Wangchhu Hydropower Project

India’s largest private power producer Adani Power and Bhutan’s state-owned power generation company Druk Green Power Corporation Limited (DGPC) have signed an agreement for the Wangchhu Hydropower Project in Himalayan Bhutan.

• India’s largest private power producer Adani Power and Bhutan’s state-owned power generation company Druk Green Power Corporation Limited (DGPC) have signed a shareholder agreement (SHA) to establish the 570 MW Wangchhu Hydropower Project in Himalayan Bhutan with an investment of Rs 6,000 crore.
• Principle agreement on Power Purchase Agreement (PPA) was also signed. Most importantly, the developers also signed a Concession Agreement (CA) with the Royal Government of Bhutan for the project.
• Signed in the presence of the Hon’ble Prime Minister of Bhutan Dasho Tshering Tobgay and Adani Group Chairman Mr. Gautam Adani, these agreements paved the way for Adani Power and DGPC to begin the implementation of the peaking run-of-river Wangchhu Hydropower Project on a Build, Own, Operate, Transfer (BOOT) model.
• The Wangchhu project will involve an investment of around Rs 60 billion in the establishment of renewable energy plants and associated infrastructure. Preparation of the detailed project report has been completed, and construction work is expected to begin in the first half of 2026, with a target to complete it within five years of its foundation.

Punatsangchhu-II project completed

• Recently, the 1020 MW Punatsangchhu-II Hydropower Project was completed with India’s cooperation, with its final unit (Unit-6) successfully connected to the national power grid. With the completion of this project, Bhutan’s power generation capacity has increased by about 40%, now exceeding 3500 MW.

Hydropower capacity

• Bhutan and India have been working together to harness Bhutan’s vast hydropower potential since the 1960s. Bhutan plans to add 15,000 MW in hydropower and 5,000 MW in solar power generation capacity by 2040.
• Wangchhu is the first hydropower project to be initiated under a Memorandum of Understanding signed in May 2025 between the Adani Group and DGPC for the joint development of 5,000 MW of hydropower capacity in Bhutan.
• Several hydropower projects are already operational as a major pillar of cooperation between India and Bhutan, including Mangdechhu (720 MW) and Chhukha (336 MW).