Reliance Group Plans Major Solar and Hydro Projects in Bhutan

On October 2, 2024, Anil Ambani-run Reliance Group announced plans to embark on ambitious solar and hydroelectric power projects in Bhutan. The initiative involves a collaboration with Druk Holding and Investments Ltd (DHI), the commercial arm of the Bhutanese government. The partnership aims to develop a total of 1,270 megawatts of renewable energy capacity, comprising both solar and hydroelectric projects.

Included in this initiative is the construction of Bhutan’s largest solar power plant, a 500 MW facility in Gelephu Mindfulness City. This solar plant, one of the key components of the project, will be developed in two phases of 250 MW each over the next two years. Additionally, Reliance Enterprises plans to develop the 770 MW Chamkharchhu-1 hydroelectric project. This project will be executed under Bhutan’s concession model for run-of-the-river plants, which are known for their environmental efficiency.

The announcement underscores Reliance Group’s commitment to renewable energy and signifies a substantial move towards supporting Bhutan’s sustainability goals, including its target to achieve net-zero emissions. “Reliance Group will collaborate with government-owned companies in Bhutan to implement infrastructure projects that support Bhutan’s net-zero goals,” stated the company, highlighting its dedication to sustainable development.

The signing of the agreement was attended by key figures, including Harmanjit Singh Nagi, President of Corporate Development at Reliance Power Ltd, Ujjwal Deep Dahal, CEO of DHI, and Anil Ambani. The collaboration also promises improvements in Bhutan’s energy infrastructure through the implementation of smart distribution and metering systems.

Druk Holding and Investments CEO, Ujjwal Deep Dahal, commented on the strategic partnership, saying, “The partnership between Reliance Enterprises and Druk Holding leverages the strengths of both organizations in the areas of green energy and development. We are pleased to partner with Reliance to deliver world-class clean energy projects benefiting both India and Bhutan.”

This development in Bhutan represents the largest foreign direct investment by an Indian company in the country’s renewable sector. It is poised to significantly augment Bhutan’s current power capacity, which stands at 2,452 MW, with the Chamkharchhu-1 project being a notable milestone.

Beyond the immediate scope of energy production, this strategic collaboration aligns with Reliance Power’s broader goals for green energy. With an installed capacity of 5,340 MW, Reliance Power and Reliance Infrastructure continue to expand their footprint in the realm of renewable energy across the region.