Reliance partners up with Green Digital for 500 MW solar project in Bhutan

As part of a clean energy collaboration, Reliance Power has signed a commercial long term sheet with Bhutan’s Green Digital Pvt. Ltd which involves a long-term power purchase agreement for a 500 MW solar project. It marks a major milestone in incorporating renewable energy across borders. Druk Holding and Investments (DHI) is Bhutan’s premier holding company through investment. Green Digital is a subsidiary of DHI.

 

 

 

According to the agreement, this will be Bhutan’s largest solar power project. The development of the 500 MW plant will be built under an equal joint venture between Reliance Power and DHI. However, the estimated capital outlay of the project is up to Rs. 2000 crore. It will be executed under a Build-Own-Operate (BOO) Model. It represents the largest private sector foreign direct investment in Bhutan’s solar industry to date.

 

 

 

Additionally, this would also bring a major role in energy consumption. Reliance Power stated that the initiative is expected to “play a pivotal role in advancing regional clean energy integration, and enhancing cross border infrastructure collaboration across South Asia”, a TOI report said.

 

 

 

Consultations with financial institutions have begun. This will not only ensure sustainable, long-tenor project financing but it would also optimise capital structure. The company has also focused on the Engineering, Procurement and Construction (EPC) tendering process through international competitive bidding, to ensure technical excellence and cost efficiency, according to TOI.

 

 

 

Over the next 24 months, the solar project will be executed covering phased tranches. It would likely follow the agenda of strategic sustainability of Bhutan along with South Asia’s clean energy transition.

 

 

 

Ultimately, the expectation of the project is also to boost grid stability and integration. However, the project is also expected to overpower the current total solar generation capacity of the country. The plant also would also diversify the renewable energy mix, although currently dominated by hydropower.

 

 

 

In October 2024, Reliance Enterprises joined a partnership with DHI, to develop solar and hydroelectric projects for Bhutan. The agreement also committed to developing the 500 MW solar power plant along with the operation of 770 MW Chamkharchhu-I hydroelectric project, a venture Bhutan’s long-term national energy goals.

 

 

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