This partnership aligned with Bhutan's vision for its energy sector, which aimed to increase its overall generation capacity to 25,000 MW by 2040, ensuring energy security and promoting regional energy integration. Bhutan sought to achieve this target by diversifying its energy portfolio beyond traditional hydropower to include solar and geothermal energy. This included diversifying project structuring and financing through such strategic partnerships.
This strategic partnership signifies Tata Power's pre-eminence as the most preferred clean energy partner not only in India but also as a regional leader. This partnership will help unleash Bhutan’s great potential for hydropower and its important role in ensuring energy security in the region.
Through this collaboration, the companies planned to develop at least 5,000 MW of renewable energy projects. This included 4,500 MW of hydropower, which encompassed the 1,125 MW Dorjilung HEP, 740 MW Gongri Reservoir, 1,800 MW Jeri pumped storage, and 364 MW Chamkharchhu IV, all to be developed in phases. Additionally, 500 MW of solar projects were planned to be developed by Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power.
As part of this collaboration, Tata Power had recently acquired a 40% stake in the 600 MW Khorlochhu Hydroelectric project, with an investment of over Rs 6,900 crore for its development.
Tata Power and DGPC have a long-standing relationship since 2008 when the two companies joined forces to successfully develop the 126 MW Dagachhu Hydropower Plant as the first public private partnership in Bhutan’s hydropower sector. Tata Power also has a transmission project of a 1,200 km long Tala transmission line that evacuates clean power from Bhutan to India.
Tata Power has emerged as a leader in the renewable energy space, with a robust clean and green portfolio crossing 12.9 GW (6.4 GW operational, 6.5 GW under construction) which constitutes 42% of its total capacity, and is well-positioned to expand this to 70% by 2030. Tata Power has over 100 years of experience in hydropower generation and is emerging as a key player in pumped hydro storage projects. The Company is committed to supporting India’s successful energy transition, it added.
Praveer Sinha, CEO & MD, Tata Power, said, “Tata Power's partnership with Druk Green Power Corporation reinforces our credentials as the most preferred clean energy partner in the region. Together, we are building 5000 MW of clean energy capacity that will help harness Bhutan's hydropower potential and support both countries' growing energy demands with reliable and round-the-clock clean energy supply. Together we are shaping a new energy era."
Dasho Chhewang Rinzin, MD, DGPC said, “This strategic partnership with Tata Power is in keeping with Bhutan’s aspirations to maximize benefits to the people of Bhutan through fast-tracking the harnessing of its huge renewable energy resources for its economic development and long-term energy security. Bhutan places a lot of confidence in Tata Power and the partnership to deliver on these expectations.”
Tata Power Company is one of India's largest integrated power companies and together with its subsidiaries and jointly controlled entities, has an installed / managed capacity of 14,453 MW. The company has a presence across the entire power value chain - generation of renewable as well as conventional power including hydro and thermal energy, transmission & distribution, coal & freight, logistics, and trading.
The company’s consolidated net profit increased 7.44% to Rs 1,093.08 crore despite of 0.26% increase in revenue from operations to Rs 15,697.67 crore in Q2 FY25 over Q2 FY24.
Shares of Tata Power Company fell 1.90% to currently trade at Rs 400.35 on the BSE.