India-Bhutan Energy Cooperation-Wangchhu Hydro Project 2025

Adani Group and Druk Green Power Corporation (DGPC) of Bhutan concluded a historic agreement in 2025 of the joint development of the 570 MW Wangchhu Hydroelectric Project . The estimated project worth is 6,000 crore and will be executed under Build, Own, Operate, Transfer (BOOT) model where construction should start early 2026 and is expected to be completed in five years. This project is a new phase in the centuries old energy relationship between India and Bhutan.

Project Overview

A run-of-river project on the Wangchhu River (tributary of the Brahmaputra), Chukha District , Bhutan, is the Wangchhu project. The project is planned to produce approximately 2,478.93 GWh of electricity per year designed with four turbines of 142.5 MW each . It is expected to satisfy the highest winter season demand in Bhutan and at the same time enable the export of excess energy to India in the summer season.

Investment and Strategic Partnership.

This is the initial project of the Memorandum of Understanding between Adani Power and DGPC that was signed in May 2025 to collaboratively establish hydropower capacity of 5,000 MW in Bhutan. The large-scale investment reflects the commitment of the partners to the development of clean energy and collaboration across borders. Some other hydro projects are also being contemplated.

Economic and Energy Impact

Bhutan has already generated above 2,500 MW of hydro electricity , which is a major contributor to the Bhutanese economy. The Wangchhu project will also assist in stabilization of seasonal power supply , less dependence on imports in lean months, and in the aspiration of Bhutan to have 25,000 MW by the year 2040 . In the case of India, it will access dependable renewable energy , which will lead to less reliance on fossil fuels and improvement of grid stability.

Benefits of Operation and Development.

In the framework of the BOOT model , Adani Power will construct and run the project within a specified time frame and then give it over to Bhutan. This guarantees involvement of the private sector and still maintains the long term energy sovereignty of Bhutan. The project will also have employment opportunities and spur development of infrastructure in the region.

Meaning to Sustainable Growth.

In contrast to the large reservoir dams run-of-river projects like Wangchhu have less ecological footprint, which is consistent with sustainable development. On top of energy generation, the project boosts bilateral relations between India and Bhutan , strengthening the Himalayan region as a center of renewable power partnership.