DGPC and Thailand’s EGATi will explore up to $2 billion in investments in Bhutan’s solar and hydropower sectors
The companies aim to initiate implementation of at least one or two projects within the next year
The partnership supports Bhutan’s target of reaching 25 GW of renewable energy generation capacity by 2040
Bhutan is seeking to attract up to $2 billion in investment for solar and hydropower projects. The initiative will be pursued through a new partnership between state-owned Druk Green Power Corporation Limited (DGPC) and Thailand’s EGAT International Company Limited (EGATi).
The two companies recently signed a Memorandum of Understanding (MoU) in Thimphu to explore investment opportunities and collaborate on developing renewable energy projects in the country. Bhutanese Prime Minister Dasho Tshering Tobgay and senior representatives from both countries attended the signing ceremony.
Under the proposed partnership, DGPC and EGATi will explore total investments of $1 billion to $2 billion in solar and hydropower projects. The agreement is intended to strengthen energy cooperation between Bhutan and Thailand and support Bhutan’s renewable energy development ambitions.
DGPC Managing Director Dasho Chhewang Rinzin said the understanding is to begin implementing at least one or two projects within the next year. The projects are expected to contribute to Bhutan’s target of achieving 25 GW of renewable energy generation capacity by 2040. This includes 5 GW of solar across utility-scale and distributed PV, to complement hydropower, for which the target is 15 GW of new capacity. As per DGPC, the country’s total installed renewable energy capacity across all operational plants stands at over 3.6 GW.
This agreement with EGATi is one of several that DGPC has been exploring with international developers for renewable energy development in the country. It has previously announced partnership agreements and MoUs with India’s Tata Power and Carbon Resources Private Limited (see Bhutan’s DGPC Partners With India’s CRPL For Renewables).
Anil Ambani-led India’s Reliance Power had announced collaboration with Druk Holding and Investment Ltd., the parent of DGPC, in 2024 to co-develop a 500 MW solar power plant and a 770 MW hydropower project. However, Reliance was later reported to have pulled out of the commitment.