Anil Ambani’s Reliance Infrastructure and Reliance Power, having recently declared themselves debt-free, have secured a landmark deal to build Bhutan’s largest green energy power project. The venture, expected to attract investments exceeding $1 billion, reinforces Bhutan’s strategic importance for India, serving as a buffer state between India and China. Reliance Group is set to develop 1,270 megawatts of solar and hydroelectric power, marking its entry into Bhutan’s renewable energy sector.
This initiative includes constructing Bhutan’s largest solar plant, a 500 MW facility designed to generate clean energy and contribute to global climate change efforts. Sources indicate that these power projects hold strategic significance and have garnered the Indian government’s support.
In collaboration with Druk Holding and Investments Ltd (DHI), the commercial arm of Bhutan’s government, Reliance Enterprises—a subsidiary of Reliance Infrastructure Ltd and Reliance Power Ltd—will spearhead the project, focusing on renewable energy initiatives such as solar and hydroelectric power, while exploring cutting-edge green technologies.
The agreement was signed this week by Harmanjit Singh Nagi, President of Corporate Development at Reliance Power Ltd, and Ujjwal Deep Dahal, CEO of Druk Holding and Investments. Anil Ambani was present during the signing ceremony.
The deal covers the construction of a 500 MW solar plant in Gelephu Mindfulness City, set to be completed in two phases of 250 MW each over the next two years. Additionally, Reliance Enterprises will develop the 770 MW Chamkharchhu-1 hydroelectric project, under Bhutan’s concession model for run-of-the-river plants. This collaboration aims to support Bhutan’s net-zero goals by developing infrastructure projects, including smart distribution and metering systems.
“Reliance Group is committed to long-term collaboration with Bhutan and its renewable energy landscape,” the company stated, highlighting the project’s contribution to both economic development and Bhutan’s Gross National Happiness Index.
With Bhutan’s current power capacity at 2,452 MW, the Chamkharchhu-1 project represents a major milestone in the nation’s renewable energy efforts and marks the largest foreign direct investment by an Indian company in Bhutan’s green energy sector. Ujjwal Deep Dahal, CEO of Druk Holding and Investments, remarked, “This partnership between Reliance Enterprises and Druk Holding unites both organizations’ expertise in green energy and development, benefitting India and Bhutan alike.”
Reliance Power, with an installed capacity of 5,340 MW, and Reliance Infrastructure, active in energy distribution and infrastructure projects, are further expanding their green energy footprint with this significant venture in Bhutan, reinforcing the Reliance Group’s dedication to sustainable energy solutions.