Druk Green Power Corporation (DGPC) and Tata Power have formed a strategic partnership to develop the 600MW Khorlochhu Hydropower Project in Bhutan. The project, previously known as the Kholongchhu Hydropower Project, will require an investment of around Nu 70 billion, with DGPC holding a 60% stake and Tata Power a 40% stake.

The project is to be developed in the Trashiyangtse Dzongkhag district in Eastern Bhutan on the Kholongchhu river, The total project cost, including financing charges, is estimated at Nu 70 billion, and construction is expected to take five years. All necessary statutory approvals have been obtained, and construction is set to begin immediately.

Tata Power’s CEO and Managing Director, Dr. Praveer Sinha, emphasized the significance of this partnership, stating: “This is a landmark alliance for Tata Power and Druk Green Power Corporation. The development of the 600 MW Khorlochhu Hydropower Project in Bhutan will provide energy security to the region. This project marks a significant step towards building a sustainable energy landscape underscoring Tata Power’s commitment to a greener future.”

DGPC’s Managing Director, Dasho Chhewang Rinzin, highlighted the project’s importance for Bhutan’s energy security and economic development, adding: “This partnership with Tata Power opens new avenues for sourcing investments to harness Bhutan’s huge hydropower and solar potential. It further ensures access to and complements the evolving Indian energy market for surplus generation in the summer months with opportunities to expand in future to the regional market..”

Khorlochhu Hydropower Limited will establish long-term Power Purchase Agreements with Tata Power Trading Corporation Limited for exporting surplus power to India during the summer and with Bhutan Power Corporation Limited for domestic sales in the winter.

The project is part of Bhutan’s broader goal of achieving 20GW of hydropower generation capacity by 2040 and will contribute to meeting both Bhutan’s winter electricity needs and India’s growing power demand in the summer.

The new collaboration builds on an existing alliance between Tata Power and DGPC for the 126MW Dagachhu hydropower plant in Bhutan. Tata Power also has a joint venture with Power Grid Corporation of India for a 1200km long Tala transmission line to bring electricity from Bhutan to Delhi.