Adani Group has officially commenced construction of the 570 MW Wangchhu Hydro Electricity Project in Bhutan, marking a major milestone in cross-border renewable energy cooperation between India and Bhutan. The project was formally launched with the foundation stone ceremony held in the presence of Tshering Tobgay, Prime Minister of Bhutan, and Gautam Adani, Chairman of the Adani Group.
The Wangchhu project was first announced in September 2025 and represents the first hydropower development to move into execution under a broader bilateral framework aimed at expanding Bhutan’s renewable energy capacity.
Project Overview
The Wangchhu Hydro Electricity Project will be developed under a joint venture structure between Druk Green Power Corporation (DGPC) and Adani Group. DGPC will hold a 51 percent majority stake, while Adani Group will own the remaining 49 percent.
Key project details:
- Project capacity: 570 MW
- Location: Bhutan
- Ownership structure: DGPC (51%), Adani Group (49%)
- Estimated investment: ₹60 billion
- Expected completion: Within five years of groundbreaking
- Sector: Renewable Energy / Hydropower
The project will involve the development of hydropower generation infrastructure along with associated transmission and supporting facilities.
Part of a Larger Hydropower Partnership
The Wangchhu project is the first hydropower initiative to be implemented under a landmark Memorandum of Understanding signed in May 2025 between Adani Group and DGPC. Under this agreement, the two entities committed to jointly develop 5,000 MW of hydropower capacity in Bhutan.
This long-term collaboration is aimed at strengthening Bhutan’s position as a regional hub for clean hydropower while supporting India’s growing demand for renewable energy through cross-border power trade.
Leadership Perspectives
Commenting on the commencement of the project, Gautam Adani said that the signing of the 5,000 MW hydropower MoU and the launch of the Wangchhu project mark significant milestones in the India–Bhutan energy partnership. He expressed gratitude to Bhutan’s leadership for their support and reiterated Adani Group’s commitment to building a partnership based on sustainability, trust, and long-term value.
The foundation stone ceremony was attended by senior officials from both countries, reflecting the strategic importance of the project at the national and regional levels.
Strategic Importance for Bhutan and India
Hydropower plays a central role in Bhutan’s renewable energy strategy and economic development. Projects such as Wangchhu contribute to clean electricity generation, export revenues, and long-term energy security.
For India, collaboration with Bhutan on hydropower projects supports diversification of renewable energy sources, grid stability, and regional energy cooperation. The Wangchhu project aligns with broader regional efforts to scale up low-carbon power generation in South Asia.
Sustainability and Long-Term Vision
Gautam Adani also highlighted Bhutan’s focus on sustainable development, referring to initiatives such as Gelephu Mindfulness City, a visionary project conceptualised under the leadership of King Jigme Khesar Namgyel Wangchuck. According to Adani, such initiatives reflect Bhutan’s commitment to balancing economic growth with environmental stewardship.
Why This Development Matters
The commencement of the Wangchhu hydropower project underscores the growing role of cross-border renewable energy partnerships in accelerating the clean energy transition. Key benefits include:
- Expansion of clean, renewable power capacity
- Strengthened India–Bhutan energy cooperation
- Long-term energy security and grid stability
- Economic development through sustainable infrastructure
Industry Outlook
As South Asia accelerates its shift toward low-carbon energy systems, hydropower is expected to remain a critical component of the regional renewable mix. Large-scale projects backed by long-term partnerships are likely to play an increasingly important role in meeting climate commitments and supporting economic growth.
The Wangchhu project represents an early but significant step in the broader 5,000 MW hydropower roadmap agreed between Adani Group and DGPC.
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