Adani Power has entered a shareholders' agreement with Druk Green Power Corporation (DGPC) to develop the 570MW Wangchhu hydroelectric project in Bhutan.

The agreements were signed in the presence of Bhutan's Prime Minister Dasho Tshering Tobgay and Adani Group chair Gautam Adani.

An initial understanding regarding the power purchase agreement was also established, along with a concession agreement with the Royal Government of Bhutan.

Adani Power CEO SB Khyalia said: “Bhutan is a role model for the world in sustainable development, and we are very excited to play a leading role in the development of the country’s natural resources through this renewable energy project.

“The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydropower generation is low. During the summer months, it would export power to India.”

The project will be executed under a build, own, operate, transfer (BOOT) framework, with an investment estimated at around Rs60bn ($680m) for the construction of the renewable energy facility and its associated infrastructure.

The detailed project report has been completed. Construction is due to start in the first half (H1) of 2026, with a projected completion timeline of five years from the start of construction.

This initiative is the first hydroelectric project to be undertaken following a memorandum of understanding signed in May 2025 between Adani Group and DGPC, with an aim to co-develop 5GW of hydropower in Bhutan.

Discussions for additional projects under this alliance are currently in progress.

DGPC managing director Dasho Chhewang Rinzin said: “Bhutan and India have, since the 1960s, worked closely together to harness the huge hydropower potential that Bhutan is endowed with.

“This cooperation in hydropower has immensely benefited both countries and is considered the cornerstone of the exemplary and friendly relations that the two countries enjoy.

“As Bhutan endeavours to become a high-income GNH (Gross National Happiness) country within the next decade, access to reliable and affordable electricity from its renewable energy resources such as hydropower and solar will be critical to enable other investments to drive its economic growth."

Last month, Adani Power received a letter of award to set up a 2.4GW greenfield plant in Pirpainti within the Bhagalpur district of Bihar, India.