Anil Ambani's Reliance Infrastructure and Reliance Power, which recently announced going debt free, has now clinched a deal to build Bhutan's largest green energy power project that is likely to attract investments worth more than $ 1 billion. Bhutan has strategic importance for India since it acts as a buffer state between India and China. Reliance Group has announced its entry into Bhutan with plans to develop 1,270 megawatts of solar and hydroelectric power projects. This initiative includes building Bhutan's largest solar plant, a 500 MW facility, aimed at producing clean energy and supporting the fight against climate change. Power projects in Bhutan are of strategic importance and have blessings of the Indian government, sources said.
Reliance Infrastructure has partnered with Druk Holding and Investments Ltd (DHI), the commercial arm of the Bhutanese government. Reliance Enterprises, a new subsidiary under Reliance Infrastructure Ltd and Reliance Power Ltd, will lead the project. The company’s focus will be on renewable energy, including solar and hydroelectric ventures, while also exploring new green technologies, the company said. Anil Ambani was present at the event for the signing of the agreement with Bhutan company this week.
The agreement is for the construction of the 500 MW solar plant in Gelephu Mindfulness City, to be completed in two phases of 250 MW each over the next two years. Additionally, Reliance Enterprises will develop the 770 MW Chamkharchhu-1 hydroelectric project under Bhutan’s concession model for run-of-the-river plants. "Reliance Group will collaborate with government-owned companies in Bhutan to implement infrastructure projects that support Bhutan's net-zero goals," the company said.
The agreement was signed by Harmanjit Singh Nagi, President of Corporate Development at Reliance Power Ltd, and Ujjwal Deep Dahal, CEO of Druk Holding and Investments. Beyond energy production, Reliance Enterprises will also support Bhutan’s infrastructure by implementing smart distribution and metering systems.
“This initiative underscores Reliance Group’s long-term commitment to Bhutan and its renewable energy landscape," the statement continued, linking the project to both economic growth and Bhutan’s Gross National Happiness Index.
With Bhutan's current power capacity at 2,452 MW, the Chamkharchhu-1 project represents a significant milestone in the country’s renewable energy development. It also marks the largest foreign direct investment by an Indian company in Bhutan's renewable sector.
Ujjwal Deep Dahal, CEO of Druk Holding and Investments, remarked, "The partnership between Reliance Enterprises and Druk Holding leverages the strengths of both organizations in the areas of green energy and development. We are pleased to partner with Reliance to deliver world-class clean energy projects benefiting both India and Bhutan."
Reliance Power, with an installed capacity of 5,340 MW, and Reliance Infrastructure, active in energy distribution and infrastructure projects, continue to expand their green energy presence. This new venture in Bhutan further strengthens Reliance Group's commitment to sustainable energy solutions.
_20241105142833_original_image_22.webp)