Reliance Power Limited, one of India’s premier power generation companies, has signed a commercial term sheet for a long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL), a subsidiary of Druk Holding and Investments Limited (DHI)—the investment arm of the Royal Government of Bhutan. This strategic collaboration marks a significant step towards fostering regional clean energy integration and strengthening cross-border energy infrastructure in South Asia.
As part of the initiative, Reliance Power and DHI will jointly develop Bhutan’s largest solar power project under a 50:50 joint venture. With an installed capacity of 500 MW and a capital investment of up to INR 2,000 crores, the project will operate under the Build-Own-Operate (BOO) model. It represents the largest foreign direct investment (FDI) by the private sector in Bhutan’s solar energy sector to date.
This milestone underscores Reliance Power’s continued focus on investing in impactful, long-term clean energy assets, while also reinforcing its strategic presence in the regional energy market. The company has initiated the Engineering, Procurement, and Construction (EPC) tendering process, ensuring adherence to international competitive bidding standards for optimal execution and cost efficiency. In parallel, Reliance Power is engaging with leading financial institutions to design long-tenor, sustainable financing structures aimed at optimizing the capital mix and improving overall financing efficiency.
The solar project will be rolled out in phased tranches over the next 24 months, in line with Bhutan’s sustainability objectives and the broader regional energy transition goals. Once completed, the project is set to redefine Bhutan’s solar energy landscape by significantly increasing installed solar capacity and diversifying the country’s renewable energy mix beyond hydropower. It will also contribute to improved grid stability and regional power integration.
Reliance Power currently boasts a clean energy pipeline of 2.5 GWp solar and over 2.5 GWhr Battery Energy Storage Systems (BESS), making it India’s largest integrated Solar + BESS developer.