Reliance Power on Monday signed a long-term power purchase agreement (PPA) with Green Digital to jointly develop a 500 megawatt (MW) solar power plant in Bhutan. Green Digital is owned by Druk Holding and Investments (DHI), the investment arm of the Royal Government of Bhutan.
The two companies will jointly develop Bhutan’s largest solar power project through a 50:50 venture entailing a capital outlay of up to Rs 2,000 crores under Build-Own-Operate (BOO) model. This represents the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date, Reliance Power said.
The company has already commenced the engineering, procurement, and construction (EPC) tendering process, adhering to international competitive bidding standards to ensure optimal technical execution and cost efficiency.
“This milestone transaction highlights Reliance Power’s continued focus on capital deployment into high-impact, long-duration clean energy assets, while strengthening its strategic positioning in the regional power infrastructure space,” it said.
The company has also initiated engagement with leading financial institutions to structure sustainable, long-tenure project finance solutions, focused on optimising capital structure and enhancing overall financing efficiency.
“This groundbreaking initiative is expected to play a pivotal role in advancing regional clean energy integration, and enhancing cross-border infrastructure collaboration across South Asia,” the company said.
The project will be implemented in phased tranches over the next 24 months, in an attempt to redefine Bhutan’s solar generation capacity, surpassing all current solar installations.
“The landmark solar investment in Bhutan underscores Reliance Group’s strategic focus on expanding its renewable energy portfolio, while reinforcing its long-term commitment to strengthening India-Bhutan economic cooperation,” it added.
Reliance Power’s total clean energy pipeline currently stands at 2.5 GWp solar and over 2.5 GWhr of BESS (Battery Energy Storage Systems) capacity.
This project is poised to significantly diversify Bhutan’s renewable energy portfolio beyond hydropower and enhance grid stability and integration.
In October 2024, Reliance Enterprises, jointly promoted by Reliance Power and Reliance Infrastructure, initiated a strategic partnership with DHI to develop solar and hydropower projects in Bhutan. As part of the agreement, the firms will jointly develop a 500 MW solar power project.
The partnership also entails the execution and long-term operation of 770 MW Chamkharchhu-I hydroelectric project, a run-of-the-river asset structured under a long-term concession model.
Reliance Power, part of the Reliance Group, operates in the power generation sector. The company has an operating portfolio of 5,305 MW or 5.3 GW, including 3,960 MW (3.9 GW) Sasan Power.