Indian power generation company Reliance Power has signed a commercial term sheet for a long-term power purchase agreement (PPA) with Green Digital, owned by Druk Holding and Investments (DHI), the investment arm of the Royal Government of Bhutan.
The initiative marks a significant step in promoting regional clean energy integration and enhancing cross-border infrastructure collaboration in South Asia.
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Reliance Power and DHI will jointly develop Bhutan’s largest solar power project through a 50:50 venture, offering installed capacity of 500MW.
The project represents a capital investment of up to Rs20bn ($234bn) under a build-own-operate (BOO) model – the largest private sector foreign direct investment in Bhutan’s solar energy sector.
The agreement underscores Reliance Power’s commitment to investing in long-duration clean energy assets and strengthens its strategic position in the regional power infrastructure landscape.
Reliance Power has begun the engineering, procurement and construction (EPC) tendering process and is engaging with financial institutions to structure sustainable project finance solutions.
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By GlobalDataSolar investment in Bhutan aligns with the Reliance Group’s strategy to expand its renewable energy portfolio and re-inforces its commitment to India-Bhutan economic cooperation.
Reliance Power’s clean energy pipeline includes 2.5 gigawatts peak solar and more than 2.5 gigawatt hours of battery energy storage system (BESS), positioning it as India’s largest player in the integrated solar plus BESS segment.
The project will be implemented over the 24 months up to May 2027 in line with Bhutan’s sustainability framework and the South Asian region’s energy transition agenda.
It is expected to significantly enhance Bhutan’s solar generation capacity and diversify its renewable energy portfolio.
In October 2024, Reliance Enterprises, a joint venture between Reliance Power and Reliance Infrastructure, formed a strategic partnership with DHI to develop solar and hydropower projects in Bhutan, including a 500MW solar project and the 770MW Chamkharchhu-I hydroelectric project.
In January 2025, Reliance NU Suntech, a subsidiary of Reliance Power, announced plans to invest $1.16bn in establishing a solar power plant with a BESS in the state of Andhra Pradesh, India.
The project will be Asia’s largest, featuring a 930MW solar energy contract and a 465MW/1,860 megawatt hours BESS.
