New Delhi, Sep 6 (UNI) Adani Power and Druk Green Power Corporation Ltd (DGPC) today signed a series of agreements, including Shareholders Agreement (SH), an in-principle understanding on the Power Purchase Agreement (PPA), and Concession Agreement (CA) for setting up a 570 MW Wangchuu hydroelectric project in the Himalayan Kingdom of Bhutan.
These were signed in the presence of Prime Minister of Bhutan Dasho Tshering Tobgay and Gautam Adani, chairman of Adani Group.
Stressing on Bhutan’s strategic importance, SB Khyalia, CEO of Adani Power, said, “ Bhutan is a role model for the world in sustainable development and we are very excited to play a leading role in the development of the country’s natural resources through this renewable energy project.”
“ The Wangchuu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro power generation is low. During the summer months, it would export power to India.” Khyalia added.
The Wangchuu Project will see an investment of about INR 60 billion in setting up the renewable energy power plants and related infrastructure.
Dasho Cheewang Rinzin, Managing Director of Druk Green Power Corporation Ltd (DGPC), said, “ Bhutan and India have, since the 1960s, worked closely together to harness the huge hydropower potential that Bhutan is endowed with. This cooperation in hydropower has immensely benefited both countries and is considered the cornerstone of the exemplary and friendly relations that the two countries enjoy.”
“As Bhutan endeavours to become the High Income GNH (Gross National Happiness) Country, within the decade, access to reliable and affordable electricity from its renewable energy resources, such as hydropower and solar, will be critical to enable other investments to drive its economic growth. Bhutan therefore plans to add another 15,000 MW in hydropower and 5,000 MW in solar generation capacity by 2040.” Rinzin added.
Rinzin also said that DGPC is therefore happy to be partnering with Adani Group for establishing the 570 MW Wangchuu hydroelectric project. Considering the technical and financial strength and the immense experience and expertise that Adani Group brings to the table, the project implementation is expected to be fast-tracked and set a benchmark for other such projects.
DGPC is the sole hydropower operator in Bhutan, responsible for meeting the country’s domestic power demand and exporting surplus power to meet government revenues.
Moreover, Adani Power is India’s largest private thermal producer which is a part of India’s diversified Adani Group. The company sells power generated through long-term power purchase agreements with state governments and also on a merchant basis.
