DGPC, Carbon Resources to Develop Up to 250 MW Renewable Projects in Bhutan

Bhutan’s renewable energy company Druk Green Power Corporation Limited (DGPC) has entered into a Memorandum of Understanding (MoU) with Kolkata-based Carbon Resources Private Limited (CRPL) to evaluate and pursue the development of renewable energy projects in Bhutan.

In a press release, DGPC said the partnership with CRPL, which specialises in carbon products and sustainable investments, will focus on developing hydropower and solar projects with capacities ranging from 100 MW to 250 MW.

The company said the MoU signing ceremony was attended by Lyonpo Gem Tshering, Minister for Energy and Natural Resources, underscoring the Royal Government of Bhutan’s continued support for partnerships that promote clean energy development and sustainable economic growth.

The partnership marks an important milestone in expanding Bhutan’s clean energy collaboration with credible private sector partners. Under the MoU, DGPC will share relevant project information, past studies, and regulatory frameworks to enable CRPL to carry out detailed technical, commercial, and financial assessments of potential hydropower and renewable energy sites. CRPL will subsequently conduct field visits, appraisals, and due diligence before identifying suitable projects for joint development.

About the Project

The selected projects will be developed through one or more special purpose vehicles (SPVs) incorporated in Bhutan as joint ventures between DGPC and CRPL, with a proposed debt-equity financing structure of 70:30.

Speaking at the signing ceremony, Lyonpo Gem Tshering said the partnership between DGPC and CRPL represents another meaningful step toward achieving Bhutan’s long-term target of 25,000 MW of installed generation capacity by 2040. He noted that MoUs covering more than 12,000 MW of generation capacity have already been signed.

He also stressed the importance of timely project implementation alongside MoU signings, citing initiatives such as the Khorlochhu Hydropower Project, the Jamjee Solar PV Project, and other upcoming developments expected to commence within the next one to two years. 

Previously. India’s integrated power companies, like Tata Power, partnered with Bhutan’s Druk Green Power Corporation Ltd. (DGPC) to develop 5,000 MW of clean energy capacity. This collaboration aims to bolster energy security and accelerate the transition to sustainable energy across South Asia.