Tata Power Expands Renewable Footprint with Strategic Bhutan Entry

Definitive Agreements for 1,125 MW Dorjilung Hydroelectric Project Executive Summary Tata Power Company Ltd has solidified its position in the Himalayan renewable energy corridor by signing commercial agreements with Druk Green Power Corporation Ltd (DGPC) to develop the 1,125 MW Dorjilung Hydroelectric Project in Bhutan. This initiative represents Bhutan’s largest Public-Private Partnership (PPP) in the hydro sector and aligns with Tata Power’s strategy to expand its clean energy portfolio across South Asia. Investment Vehicle: The project will be executed via a Special Purpose Vehicle (SPV). Equity Split: DGPC will hold a controlling stake of 60%, while Tata Power will hold 40%. Capital Infusion: Tata Power has committed an equity investment of approximately ₹1,572 crore, to be infused in tranches. Project Valuation: The total estimated project cost is ₹13,100 crore. Upon completion, the SPV will be recognized as an associate company of Tata Power. Financing: The project is supported by the World Bank, marking a significant development in cross-border clean-energy financing. Project Specifications & Timeline Asset Profile: Run-of-the-river facility on the Kurichhu River (Mongar district) comprising six units of 187.5 MW each. Technical Capabilities: Designed with six-hour pondage to support peaking power requirements. Commissioning Target: September 2031. Strategic Rationale & Synergies Revenue Visibility: 80% of the power generated will be exported to India, ensuring steady revenue streams, while the remainder supports Bhutan’s energy security. Portfolio Expansion: This project complements Tata Power’s existing Bhutanese assets, including the operational Dagachhu project (26% stake) and the under-implementation 600 MW Khorlochhu project (40% stake). Long-Term Growth: The deal advances the Tata Power-DGPC joint ambition to develop 5,000 MW of clean energy capacity, directly supporting India’s Net-Zero targets.