Tata Power and Druk Green Power to develop 5,000 MW green energy projects in Bhutan

New Delhi: Tata Power Ltd has entered into a strategic partnership with Druk Green Power Corporation Ltd (DGPC) to develop at least 5,000 MW of clean energy generation capacity in Bhutan.

DGPC is a subsidiary of Druk Holding and Investments Ltd, a government holding company of Bhutan that has investments in manufacturing, energy, natural resources, financial services and communications.

“Tata Power’s partnership with Druk Green Power Corporation solidifies our position as the most preferred clean energy partner in the region. Together we are building 5,000 MW of clean energy capacity that will help tap into Bhutan’s hydropower potential and meet the growing energy needs of both countries with reliable round-the-clock clean energy supply. Together we are shaping a new energy era,” Praver Sinha, CEO and Managing Director, Tata Power. said in a statement.

Tata Power said this development is in line with Bhutan’s energy sector’s vision to increase its total power generation capacity to 25,000 MW by 2040 from the current 2,300 MW to ensure energy security and regional energy integration. The landlocked country plans to achieve this by diversifying its energy mix beyond traditional hydropower, including solar and geothermal energy.

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“This will diversify project structures and financing through such strategic partnerships. With the support of the Royal Government of Bhutan and the Government of India, this marks the largest partnership in Asia’s clean energy sector between two leading power companies from both countries. relationship.” Tata Power said, adding that this partnership will help unlock Bhutan’s huge hydropower potential and play an important role in ensuring regional energy security.

Projects developed through the partnership will include 4,500 MW of hydropower projects, including the 1,125 MW Dorjilung Hydropower Project; the 740 MW Gongri Reservoir; the 1,800 MW Jeri Pumped Hydro Project and the 364 MW Chamkharchhu IV Project. Another 500 MW of solar projects will be developed by Tata Power subsidiary Tata Power Renewable Energy Limited (TPREL).

Tata Power recently acquired 40% stake $600 MW Khorlochhu hydropower project with investment of US$8.3 billion $US$69 billion will be invested in developing the project.

DGPC Managing Directors Dasho Chhewang Rinzin and Praveer Sinha signed a memorandum of understanding (MoU) in Thimphu on Tuesday in the presence of Bhutanese Prime Minister Dasho Tshering Tobgay and Tata Sons Chairman N. Chandrasekaran.

Tata Power’s partnership with DGPC dates back to 2008, when the two companies joined hands to successfully develop the 126 MW Dagachhu Hydropower Station, becoming the first public-private partnership project in the hydropower industry in Bhutan.

Tata Power also owns the 1,200-km-long Tala transmission line, which carries clean electricity from Bhutan to India.

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Dasho Chhewang Rinzin, MD, DGPC, said: “This strategic partnership with Tata Power is in line with Bhutan’s aspiration to bring maximum benefit to the people of Bhutan by rapidly harnessing its vast renewable energy resources for economic growth and long-term development. .”The term energy security. Bhutan has full confidence in Tata Power and its partners to achieve these expectations. “

Bhutan’s hydropower peaks during the monsoon months, complementing India’s demand pattern which also peaks during the summer. Bhutan considers its hydropower vital to ensuring round-the-clock power supply, while India has invested heavily in renewable energy sources such as solar and wind power and plans to accelerate investment further over the next two decades.

There are also growing opportunities for regional energy integration with the recent agreement for Bangladesh to import electricity from Nepal through India, which will increase investment in hydropower in Bhutan.