Adani Power, Bhutan’s Druk Green Power to Set Up 770 MW Chamkharchhu-I Hydropower Project

Project to be developed under BOOT model with 30-year concession, construction set to begin in H1 2027

October 6, 2026

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770 MW and Counting: Adani Power’s Bhutan Hydropower Partnership Expands

Adani Power has signed a Shareholders’ Agreement with Bhutan’s state-owned Druk Green Power Corporation (DGPC) to jointly develop the 770 MW Chamkharchhu-I Hydroelectric Project, marking the second major hydropower collaboration between the two companies.

The signing ceremony was attended by Bhutan’s Prime Minister Lyonchhen Dasho Tshering Tobgay and other dignitaries. The project will be located on the Chamkharchhu River in Bhutan’s Zhemgang District.

Deal structure

Under the agreement, Adani Power and DGPC will form a public project company in Bhutan with a 49:51 equity split in DGPC’s favour, equal board representation, and proportional capital contributions. The project company will initially issue 4.9 million shares to Adani Power and 5.1 million shares to Druk Green Power at BTN 100 per share. The peaking run-of-river project will be developed under a Build, Own, Operate and Transfer (BOOT) model with a 30-year concession from the date of commercial operation, with construction expected to begin in the first half of 2027 and commissioning targeted within six years of groundbreaking.

Part of a larger 5,000 MW partnership

The Chamkharchhu-I project forms part of a broader 5,000 MW hydropower development partnership between the Adani Group and the Royal Government of Bhutan, under a memorandum of understanding signed in May 2025. It follows an earlier agreement signed in September 2025 for the 570 MW Wangchhu Hydroelectric Project, making this the second major milestone in the expanding Adani-DGPC relationship.

What both sides are saying

Anil Sardana, Managing Director of Adani Power, said hydropower will play a pivotal role in accelerating South Asia’s energy transition, and that the project would contribute significantly to enhancing energy security, reducing carbon intensity and advancing shared sustainability goals, while also enabling the export of surplus green power to India during summer months.

Dasho Chhewang Rinzin, Managing Director of DGPC, said the project would strengthen Bhutan’s energy security, particularly during winter months, while creating opportunities to optimise and export surplus clean energy to India.

Market reaction

Adani Power’s shares rose following the announcement, gaining as much as 2.08 per cent on October 6 after the deal was disclosed. Bhutan’s power sector is overwhelmingly hydropower-dependent, with the country’s existing installed capacity of around 1.6 GW drawn almost entirely from hydroelectric plants, making continued hydropower expansion central to both its domestic energy security and its role as a regional power exporter to India.

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