Tata Power has announced a new partnership with Druk Green Power Corporation Ltd. (DGPC) to develop the 600 MW Khorlochhu Hydropower Project in Bhutan.
This initiative supports the clean energy goals of both India and Bhutan. It marks a significant step in their shared commitment to renewable energy.
Partnership Overview
The project, situated in Trashiyangtse Dzongkhag, Eastern Bhutan, is a major collaboration between Tata Power and DGPC. Tata Power will hold a 40% equity stake in Khorlochhu Hydro Power Limited.
This company was formed for this Public Private Partnership (PPP). The total project cost is estimated at Rs. 6900 Crore, with a planned construction timeline of 5 years. Construction can start at once as all necessary approvals are secured.
Supporting Regional Energy Needs
The Khorlochhu Hydropower Project will help meet Bhutan’s growing electricity demands and enhance its energy security, especially during winter months. It will also export surplus electricity to India, addressing peak summer power needs.
This project builds on the existing successful partnership between Tata Power and DGPC. This partnership already includes the 126 MW Dagachhu Hydropower Plant.
Commitment to Clean Energy
This partnership aligns with Tata Power’s “Sustainable is Attainable” initiative, promoting carbon neutrality and renewable energy sources.
The project supports Bhutan’s goal of achieving 15 GW of hydropower capacity by 2040. It also strengthens the energy transition efforts in India.
Future Prospects
Long-term Power buy Agreements (PPAs) will be signed between Khorlochhu Hydro Power Ltd and Tata Power Trading Corporation Ltd. They will export summer surplus power to India. Additionally, agreements with Bhutan Power Corporation Ltd will make sure the sale of power within Bhutan during winter.
Tata Power collaborates with Power Grid Corporation of India Limited on the Tala transmission line. This collaboration enhances electricity flow from Bhutan to India. The partnership increases the efficiency and reliability of the power transmission.
Dr. Praveer Sinha, CEO & MD of Tata Power, highlighted the significance of this alliance. He emphasized its role in advancing regional energy security and sustainability. Mr. Dasho Chhewang Rinzin, MD of DGPC, noted the project’s importance for Bhutan’s economic development and energy security. He expressed hope for similar future collaborations.
This strategic investment underscores both companies’ commitment to fostering clean energy solutions and supporting regional growth.
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