Tata Power Partners with Bhutan’s DGPC to Boost Clean Energy

On November 19, 2024, Tata Power, one of India’s largest integrated power companies, announced a major partnership with Druk Green Power Corporation Limited (DGPC), a subsidiary of Druk Holding and Investments Limited, which is Bhutan’s sole generation utility. This collaboration aims to develop at least 5,000 MW of clean energy generation capacity in Bhutan, supporting both countries’ clean energy goals.

Expanding Bhutan’s Clean Energy Capacity

This partnership is aligned with Bhutan’s ambitious energy goals. The country plans to increase its total energy generation capacity to 25,000 MW by 2040, focusing on energy security and regional energy integration. The nation aims to diversify its energy portfolio by expanding beyond hydropower to include solar and geothermal energy. Strategic partnerships like the one with Tata Power will support these efforts.

Long-Term Collaboration and Regional Impact

The MoU, signed in Thimphu, marks a significant milestone in energy cooperation between India and Bhutan. The partnership involves the development of renewable energy projects, including:

• 4,500 MW of Hydropower: Key projects include the 1,125 MW Dorjilung HEP, 740 MW Gongri Reservoir, 1,800 MW Jeri Pumped Storage, and 364 MW Chamkharchhu IV.
• 500 MW of Solar Projects: Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, will lead the solar projects.

Tata Power has also made an early investment in Bhutan’s energy sector by acquiring a 40% stake in the 600 MW Khorlochhu Hydroelectric Project, which will cost over ₹69 billion.

Strengthening the India-Bhutan Energy Partnership

Tata Power and DGPC have been working together since 2008, when they developed Bhutan’s first Public-Private Partnership in the hydropower sector with the 126 MW Dagachhu Hydropower Plant. The two companies also collaborate on a 1,200 km long transmission line that brings clean energy from Bhutan to India.

Dr Praveer Sinha, CEO & Managing Director, of Tata Power, said, “Tata Power’s partnership with Druk Green Power Corporation reinforces our credentials as the most preferred clean energy partner in the region. Together, we are building 5000 MW of clean energy capacity that will help harness Bhutan’s hydropower potential and support both countries’ growing energy demands with reliable and round-the-clock clean energy supply. Together, we are shaping a new energy era.”

About Tata Power

Tata Power is a part of the Tata Group, India’s largest multinational conglomerate. It has a diversified energy portfolio of 15.2 GW, with 6.4 GW of clean energy capacity, making up 42% of its total capacity. Tata Power is committed to achieving carbon neutrality by 2045 and serves about 12.5 million customers across India.

On November 21, 2024, Tata Power share price opened at ₹411.50, touching the day’s low at ₹397.40 as of 10:23 AM on NSE. 

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