DGPC and India’s Carbon Resources Private Limited (CRPL) have signed an MoU to jointly explore hydropower and solar projects in Bhutan
Identified projects will be developed through Bhutan-incorporated joint venture SPVs, with a proposed debt–equity structure of 70:30
Separately, India Power Corporation Limited has partnered with Green Energy Power Private Limited of Bhutan to develop a 70 MW solar project in Paro District
Druk Green Power Corporation Limited (DGPC), the Bhutanese renewable energy company, will explore the development of hydropower and solar projects with capacities ranging from 100 MW to 250 MW. To this end, it has roped in India’s Carbon Resources Private Limited (CRPL).
Under a memorandum of understanding (MoU) signed, both companies will jointly evaluate and pursue joint renewable energy project development in Bhutan.
They target to develop identified projects through Bhutan-incorporated special purpose vehicles (SPVs) as joint ventures. DGPC and CRPL will create these vehicles under joint ventures with a proposed 70:30 debt-equity financing structure.
For its part, DGPC will share relevant project information, past studies, and regulatory frameworks, while CRPL will carry out technical, commercial, and financial assessments of potential sites that can host hydropower and solar energy projects. The latter will also be responsible for field visits, appraisals, and due diligence.
“This partnership forms part of DGPC’s broader initiative to engage credible private investors in support of Bhutan’s long-term renewable energy vision and to develop future-ready green infrastructure that strengthens national and regional clean power systems,” said DGPC’s Managing Director, Dasho Chhewang Rinzin.
DGPC is a subsidiary of Druk Holding and Investments Limited (DHI), which entered into a long-term power purchase agreement with another Indian company, Reliance Power Limited, for a 500 MW solar project (see Asia Pacific Solar PV News Snippets).
Another Indian company, India Power Corporation Limited, separately announced a partnership with Green Energy Power Private Limited of Bhutan to develop a 70 MW solar power project in Paro District. This marks its strategic entry into the Bhutanese energy market, where it targets to deploy 1.5 GW solar capacity over the next 5 years.
Tata Power had earlier entered into a strategic partnership with DGPC to develop at least 5 GW clean energy capacity, including 500 MW of solar (see Asia Pacific Solar PV News Snippets).
Bhutan targets 25 GW of installed power generation capacity by 2040, comprising 5 GW from solar and wind, while hydropower will bring in 20 GW. At the DGPC and CRPL agreement signing, the country’s Minister for Energy and Natural Resources, Lyonpo Gem Tshering, shared that MoUs for over 12 GW of generation capacity have already been signed. He stressed on the need for timely implementation of the projects alongside MoU signings.
DGPC recently launched a tender for its 120 MW Wobthang Solar Farm, which is financed by the Asian Development Bank (see Bhutan Invites Bids For 120 MW Solar PV Project).