RPower signs power purchase pact in Bhutan with Green Digital

NEW DELHI, May 19: Reliance Power on Monday said it has signed a commercial term sheet for long-term power purchase agreement with Green Digital Pvt Ltd, owned by Druk Holding and Investments Ltd, the investment arm of the Royal Government of Bhutan.
Reliance Power and Druk Holding and Investments Ltd (DHI) will jointly develop Bhutan’s largest solar power project through a 50:50 venture, with an installed capacity of 500 MW, a company statement said.
The project entails a capital outlay of up to Rs 2,000 crores under Build-Own-Operate (BOO) model, representing the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date.
This initiative is expected to play a pivotal role in advancing regional clean energy integration, and enhancing cross-border infrastructure collaboration across South Asia, it stated.
Reliance Power has commenced the Engineering, Procurement, and Construction (EPC) tendering process, adhering to international competitive bidding standards to ensure optimal technical execution and cost efficiency.
The company has also initiated engagement with leading financial institutions to structure sustainable, long-tenor project finance solutions, focused on optimizing capital structure and enhancing overall financing efficiency.
The project will be implemented in phased tranches over the next 24 months, closely aligned with Bhutan’s strategic sustainability framework and broader regional energy transition agenda across South Asia.
The project is expected to redefine Bhutan’s solar generation capacity, surpassing all current solar installations.
This initiative is poised to significantly diversify Bhutan’s renewable energy portfolio beyond hydropower and enhance grid stability and integration.
In October 2024, Reliance Enterprises, jointly promoted by Reliance Power Ltd, and Reliance Infrastructure Ltd initiated a strategic partnership with DHI Ltd to develop solar and hydropower projects in Bhutan.
As part of the agreement, Reliance Enterprises and DHI will jointly develop a 500 MW solar power project. The partnership also entails the execution and long-term operation of the 770 MW Chamkharchhu-I hydroelectric project, a run-of-the-river asset structured under a long-term concession model, aligned with Bhutan’s national energy strategy. (PTI)

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