Reliance Power Signs PPA With Green Digital, Bhutan

Reliance Power Limited (Reliance Power),which is backed by the Anil Dhirubhai Ambani group , has signed commercial term sheet for long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL), owned by Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan. The signing means a step forward for Reliance Power’s green power plans in Bhutan, besides advancing regional clean energy integration and cross-border infrastructure collaboration across South Asia. Bhutan derives a significant proportion of its national revenues from export of Hydropower energy to India. The solar deals could presumably serve to enhance India’s ability to use its Hydropower generation on demand further. 

Reliance Power and DHI will jointly develop Bhutan’s largest solar power project through a 50:50 venture, with an installed capacity of 500 MW. The project entails a capital outlay of up to INR 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. Reliance Power has commenced the Engineering, Procurement, and Construction (EPC) tendering process. 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. 

Solar + BESS segment. 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 Limited, and Reliance Infrastructure Limited initiated a strategic partnership with Druk Holding and Investments Limited to develop solar and hydropower projects in Bhutan. As part of the agreement, Reliance Enterprises and Druk Holding and Investments Limited will jointly develop a 500 MW solar power project. The partnership also entails the execution and long-term operation of 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.