Bhutan’s Druk Green Power Corporation and India’s Carbon Resources Private Limited have agreed to collaborate on new solar and hydropower projects in Bhutan with capacities between 100 MW and 250 MW.

Bhutan’s leading renewables company Druk Green Power Corporation (DGPC) has signed a memorandum of understanding with Kolkata-based Carbon Resources Private Limited (CPRL) to jointly pursue renewable energy projects.

Under the terms of the partnership, DGPC and CPRL will collaborate on developing new solar and hydropower projects in Bhutan with capacities ranging between 100 MW and 250 MW.

DGPC will be responsible for sharing project information, past studies and regulatory frameworks to assist CRPL in undertaking required technical, commercial and financial assessments of potential projects.

Identified sites will then be developed through one or more special purpose vehicles incorporated in Bhutan as joint ventures between the two parties. The memorandum of understanding proposes a debt-equity financing structure of 70:30 between DGPC and CPRL.

The signing ceremony was attended by Bhutan’s Minister for Energy and Natural Resources, Lyonpo Gem Tshering, who said memorandums of understanding for more than 12 GW of generation capacity have been signed in the country to date.

Bhutan has a target of reaching 25 GW of installed generation capacity by 2040. A World Bank report published last June reported the country’s total generation capacity stood at 2.5 GW by the end of 2024, made up almost entirely of hydropower plants.

Bhutan’s first utility-scale solar plant, a 17.38 MW array located towards the centre of the country, was commissioned last July. A month later, a consortium consisting of local firm Rigsar Construction and India’s HILD Energy was awarded a contract to develop the 120 MW Jamjee solar project.

In December, DGPC opened a tender for the 120 MW Wobthang solar project. The project’s feasibility study and consultation meetings have since been completed, with DGPC planning to award the contract by June. The project is scheduled to begin construction this September and with the build expected to take around 18 months, is pencilled for operations during the first half of 2028.

Bhutan’s current national energy policy, published last year, aims to add 5 GW of solar capacity by 2040.

In Short : India Power Corporation Limited is set to develop a 70 MW solar power project in Bhutan, strengthening cross-border clean energy cooperation between the two countries. The project supports Bhutan’s renewable energy goals while enhancing regional energy security, promoting sustainable power generation, and reinforcing India’s role in driving South Asia’s green energy transition.

In Detail : India Power Corporation Limited’s plan to develop a 70 MW solar project in Bhutan marks a significant milestone in regional renewable energy collaboration. The project reflects growing efforts by Indian power companies to expand their clean energy portfolios beyond national borders while contributing to sustainable development in neighboring countries. This initiative strengthens energy cooperation between India and Bhutan.

Bhutan has traditionally relied heavily on hydropower for its electricity generation, which has played a central role in its economic and environmental strategy. However, seasonal variations and climate-related uncertainties have highlighted the need to diversify energy sources. The introduction of solar power provides an opportunity to complement hydropower and improve overall energy resilience.

For India Power Corporation Limited, the Bhutan project represents a strategic step in expanding its international renewable energy presence. By investing in overseas solar infrastructure, the company enhances its project portfolio, gains access to new markets, and strengthens its position as a regional clean energy player. Such projects also support long-term business growth aligned with sustainability goals.

The 70 MW solar plant is expected to contribute significantly to Bhutan’s clean energy capacity. Solar generation can help meet rising electricity demand, reduce dependency on single-source generation, and provide greater stability to the national grid. The project also aligns with Bhutan’s broader commitment to maintaining carbon neutrality and promoting environmentally responsible development.

Cross-border renewable energy projects like this play an important role in regional energy integration. By sharing expertise, investment, and technology, countries can collectively strengthen energy security and reduce reliance on fossil fuels. The collaboration between India Power Corporation Limited and Bhutan reflects a shared vision of sustainable growth and low-carbon development.

From a technological perspective, the project is likely to adopt modern photovoltaic systems with high efficiency and advanced monitoring capabilities. These technologies improve generation performance, reduce operational costs, and ensure long-term reliability. The integration of digital tools can further enhance plant performance and grid compatibility.

The solar project is also expected to generate economic benefits for Bhutan, including employment opportunities, local infrastructure development, and skill enhancement in renewable energy operations. Such investments contribute to capacity building and support the growth of a domestic clean energy workforce.

For India, the project reinforces its role as a regional leader in renewable energy deployment. Indian companies developing projects abroad strengthen diplomatic ties, promote sustainable infrastructure, and demonstrate the country’s technical and financial capabilities in the clean energy sector. This supports India’s broader energy diplomacy objectives.

Overall, the development of a 70 MW solar project in Bhutan by India Power Corporation Limited represents more than a single infrastructure investment. It symbolizes deeper regional cooperation, diversification of renewable energy sources, and a shared commitment to building a resilient, low-carbon energy future for South Asia.

India Power Corporation Limited has partnered with Bhutan’s Green Energy Power Private Limited to develop a 70MWp solar power plant in Paro, Bhutan