Adani Power and Druk Green Power to Develop 770 MW Chamkharchhu-I Hydropower Project in Bhutan

Adani Power and Bhutan’s state-owned Druk Green Power Corporation Limited have signed a shareholders’ agreement to jointly develop the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan, marking another major expansion of India-Bhutan cooperation in hydropower.

The agreement was signed on October 5, 2026, and disclosed by Adani Power to the stock exchanges on October 6. Under the arrangement, Adani Power will hold 49% in the project company, while Druk Green Power Corporation will hold 51%.

Project to Come Up in Bhutan’s Zhemgang District

Chamkharchhu-I will be developed on the Chamkarchhu River in Zhemgang District in central Bhutan.

The project is planned as a peaking run-of-river hydropower facility, allowing it to use river flows for electricity generation while providing additional flexibility during periods of higher power demand.

The development will follow a Build, Own, Operate and Transfer model, with a concession period of 30 years from the commercial operation date.

Construction Expected to Begin in 2027

Construction of the 770 MW project is expected to begin in the first half of 2027.

The developers are targeting completion within approximately six years of groundbreaking, making Chamkharchhu-I one of the larger hydropower projects entering Bhutan’s next phase of renewable-energy expansion.

Once operational, the project is expected to strengthen Bhutan’s domestic electricity availability, particularly during periods when seasonal hydropower generation declines.

Winter Power Security and Summer Exports

Bhutan generates most of its electricity from hydropower, but seasonal variations can create a gap between generation and demand during winter.

Chamkharchhu-I is expected to help address this imbalance by adding new generation capacity that can support domestic requirements during periods of lower river flow.

During seasons when Bhutan produces surplus electricity, additional power could be exported to India, continuing the long-standing cross-border electricity relationship between the two countries.

Second Major Adani-DGPC Hydropower Partnership

Chamkharchhu-I is the second major hydropower project being pursued jointly by Adani Power and Druk Green Power Corporation.

In September 2025, the two companies signed an agreement for the 570 MW Wangchhu Hydroelectric Project in Bhutan. That project is also being developed through a 49:51 partnership between Adani Power and DGPC.

Together, Wangchhu and Chamkharchhu-I represent 1,340 MW of planned hydropower capacity under the emerging partnership.

Part of a Wider 5,000 MW Hydropower Programme

The new project sits within a broader framework for developing up to 5,000 MW of hydropower capacity in Bhutan through cooperation between the Adani Group and Bhutanese entities.

The wider partnership reflects Bhutan’s plan to substantially expand renewable-energy generation over the coming years while using its hydropower resources to support both domestic economic growth and regional electricity trade.

For Adani Power, the programme also represents an expansion beyond its conventional thermal generation base into large overseas renewable-energy infrastructure.

India-Bhutan Hydropower Cooperation Gains New Scale

Hydropower has been a central pillar of India-Bhutan economic cooperation for decades.

India has supported the development of several major Bhutanese hydropower projects while also serving as the principal market for surplus electricity exported from the Himalayan country.

Private-sector participation through projects such as Chamkharchhu-I introduces another layer to that relationship, combining Bhutanese natural resources and state-sector expertise with Indian investment and project-development capability.

A New Phase in Regional Energy Integration

The Chamkharchhu-I agreement highlights the increasing importance of cross-border renewable-energy infrastructure in South Asia.

Large hydropower projects in Bhutan can strengthen domestic energy security while providing low-carbon electricity to neighbouring markets through established transmission links.

With Wangchhu already under development and Chamkharchhu-I now moving forward, the Adani-DGPC partnership is becoming an important component of Bhutan’s renewable-energy expansion and the wider India-Bhutan energy relationship.

The 770 MW project therefore represents more than an individual power plant. It strengthens long-term energy cooperation between India and Bhutan while adding significant new hydropower capacity to the eastern Himalayan region.

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References

• Adani Power Limited, Stock Exchange Disclosure under Regulation 30: Shareholders Agreement with Druk Green Power Corporation for 770 MW Chamkharchhu Hydropower Project, October 6, 2026. BazaarWatch
• Adani Power Limited, “Adani Power and Druk Green Power to Set Up the 770 MW Chamkharchhu-I Hydropower Project in Bhutan,” October 6, 2026. PublicNow
• Adani Power Limited, Shareholders Agreement for 570 MW Wangchhu Hydroelectric Project, September 6, 2025. bseindia.com

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