Reliance Power to Build Bhutan’s Biggest Solar Plant in Rs 2,000 Crore JV

Reliance Power, the energy production unit of the Anil Ambani-owned Reliance Group, has signed an agreement with Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan, to develop the Himalayan nation's largest solar power project with a capital outlay of Rs 2,000 crore.

The project will be implemented through a 50:50 joint venture between Reliance Power and DHI and will have an installed capacity of 500 MW.

In a statement, Reliance Power said the project represents “the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date.”

Following the announcement, shares of the company rose as much as 4%. However, it was trading at Rs 45.94 at 11:30 AM, up 1.91% from the last closing price on the BSE.

Reliance Power said it has signed a commercial term sheet for a long-term power purchase agreement (PPA) with Green Digital Private Limited (GDL), owned by Druk Holding and Investments Limited.

It added that Reliance Power has commenced the Engineering, Procurement, and Construction (EPC) tendering process, adhering to international competitive bidding standards to ensure optimal technical execution and cost efficiency.

"The company has also initiated engagement with leading financial institutions to structure sustainable, long-tenor project finance solutions, focused on optimising capital structure and enhancing overall financing efficiency," the statement added.

The project will be implemented in phased tranches over the next 24 months, closely aligned with Bhutan’s strategic sustainability framework and the broader regional energy transition agenda across South Asia, the company said. This initiative will also diversify Bhutan’s renewable energy portfolio beyond hydropower and enhance grid stability and integration.

In October 2024, Reliance Enterprises, jointly promoted by Reliance Power Limited and Reliance Infrastructure Limited, initiated a strategic partnership with Druk Holding and Investments Limited to develop solar and hydropower projects in Bhutan. As part of the agreement, Reliance Enterprises and Druk Holding and Investments Limited will jointly develop a 500 MW solar power project.

The partnership also entails the execution and long-term operation of the 770 MW Chamkharchhu-I hydroelectric project, a run-of-the-river asset structured under a long-term concession model, aligned with Bhutan’s national energy strategy.

Reliance Power’s total clean energy pipeline stands at 2.5 GWp of solar and over 2.5 GWh of battery energy storage systems (BESS), making it India’s largest player in the integrated Solar + BESS segment.

Reliance Power posted a consolidated net profit of Rs 126 crore in the fourth quarter of FY25 due to lower expenses. The company had reported a loss of Rs 397.56 crore in the quarter ended March 31, 2024.