Reliance Power Share Price Rises Over 2% After ₹2,000 Crore Solar JV In Bhutan

Reliance Power Limited has signed a commercial term sheet for a long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL), a company owned by Druk Holding and Investments Limited (DHI), which is the investment arm of the Royal Government of Bhutan. This marks a major step in strengthening clean energy ties between India and Bhutan.

Joint Venture for Bhutan’s Largest Solar Power Project

Reliance Power and DHI will jointly build Bhutan’s largest solar power plant with a capacity of 500 megawatts (MW). The 2 companies will hold equal ownership (50:50) in the project, which will follow the Build-Own-Operate (BOO) model. The estimated investment for this project is up to ₹2,000 crore, making it the biggest foreign direct investment (FDI) in Bhutan’s solar energy sector.

Also Read: Vesuvius India Announces 10:1 Stock Split: Set June 10 as Record Date!  

EPC Bidding and Financing Underway

Reliance Power has started the process of inviting bids for Engineering, Procurement, and Construction (EPC) under international competitive bidding standards. At the same time, the company is working with financial institutions to arrange long-term and sustainable funding for the project.

Strengthening India-Bhutan Energy Ties

This project reflects Reliance Power’s commitment to clean energy and regional cooperation. It also supports Bhutan’s goal of diversifying its renewable energy mix beyond hydropower. The solar project will be developed in phases over the next 24 months and is expected to greatly increase Bhutan’s solar generation capacity.

Partnership Background and Future Plans

In October 2024, Reliance Enterprises—jointly promoted by Reliance Power and Reliance Infrastructure—formed a strategic alliance with DHI. Besides the solar project, the partnership includes the 770 MW Chamkharchhu-I hydroelectric project, to be developed under a long-term concession model.

About Reliance Power

Reliance Power Ltd, part of the Reliance Group, is a major private-sector power company in India. It has an operational capacity of 5,305 MW, including the 3,960 MW Sasan Power Plant, which is the world's largest integrated coal-based power plant. Sasan Power has been consistently rated as the best-performing power plant in India for the last seven years.

As of May 19, 2025, Reliance Power share price (NSE: RPOWER) is trading at ₹46.03, up 2.13% for the day. The stock opened at ₹45.45 and reached an intraday high of ₹46.73 and a low of ₹45.44. It has a market capitalisation of ₹18,980 crore and a price-to-earnings (P/E) ratio of 6.57. The stock does not currently offer a dividend yield.

Conclusion

This strategic collaboration not only underscores Reliance Power’s leadership in clean energy but also marks a new chapter in India-Bhutan energy cooperation. With a strong renewable pipeline and regional presence, the company is well-positioned to drive the clean energy transition across South Asia.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.