Anil Ambani’s Reliance Power to build Bhutan’s largest solar power project

Reliance Power Ltd is partnering with Druk Holding and Investments Ltd, the investment arm of the Royal Government of Bhutan, to jointly develop Bhutan’s largest solar power project through a 50:50 joint venture, with an installed capacity of 500 megawatt (MW).

The Anil Ambani-led company has signed a term sheet for long-term power purchase agreement (PPA) with Green Digital Pvt Ltd (GDL), owned by Druk Holding and Investments Limited (DHI).

The project entails a capital outlay of up to ₹2,000 crore under Build-Own-Operate (BOO) model, representing the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date.

Reacting to the announcement, shares of Reliance Power rose as much as 3.6% in intraday trade on Monday to hit a high of ₹46.72 on the BSE. The broader benchmark indices, the BSE Sensex and the NSE Nifty, were trading marginally lower at 11:30 am.

“This groundbreaking initiative is expected to play a pivotal role in advancing regional clean energy integration, and enhancing cross-border infrastructure collaboration across South Asia,” Reliance Power said in a statement.

“This milestone transaction highlights Reliance Power’s continued focus on capital deployment into high-impact, long-duration clean energy assets, while strengthening its strategic positioning in the regional power infrastructure space,” the statement said.

Reliance Power said it 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 optimising capital structure and enhancing overall financing efficiency, it added.

The landmark solar investment in Bhutan underscores Reliance Group’s strategic focus on expanding its renewable energy portfolio, while reinforcing its long-term commitment to strengthening India-Bhutan economic cooperation.

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.

Reliance Power’s total clean energy pipeline stands at 2.5 gigawatt of solar and over 2.5 GWhr of Battery Energy Storage System (BESS).

In October 2024, Reliance Enterprises, jointly promoted by Reliance Power, and Reliance Infrastructure Ltd 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.