Druk Green Power Corporation (DGPC) and Tata Power have entered into a strategic partnership to develop the 600 MW Khorlochhu hydropower project in Bhutan. The project, previously known as Kholongchhu hydropower project, will require an investment of around Nu 70 billion, with DGPC holding 60% stake and Tata Power holding 40% stake.
The project is to be located in Trashiyangtse Dzongkhag district in eastern Bhutan on the Kholongchhu River. The total cost of the project, including financing costs, is estimated at Nu 70 billion and the construction period is expected to be five years. All necessary regulatory approvals have been obtained and construction is expected to start immediately.
Emphasising the importance of this partnership, Dr. Praveer Sinha, CEO and Managing Director, Tata Power, said, “This is a landmark alliance for Tata Power and Druk Green Power Corporation. The development of the 600 MW Khorlochhu hydropower project in Bhutan will provide energy security to the region. This project is an important step towards building a sustainable energy landscape and underscores Tata Power’s commitment to a greener future.”
DGPC Executive Director Dasho Chhewang Rinzin stressed the importance of the project for Bhutan’s energy security and economic development, adding: “This partnership with Tata Power opens new avenues for investment to tap into Bhutan’s enormous hydropower and solar potential. It also secures access to the developing Indian energy market and complements it for surplus generation during the summer months with opportunities for future expansion into the regional market.”
Khorlochhu Hydropower Limited will enter into long-term power purchase agreements with Tata Power Trading Corporation Limited for export of surplus power to India during summer and with Bhutan Power Corporation Limited for domestic sale during winter.
The project is part of Bhutan’s broader goal of achieving 20 GW of hydropower capacity by 2040 and will help meet both Bhutan’s winter electricity needs and India’s growing summer electricity needs.
The new collaboration builds on an existing alliance between Tata Power and DGPC for the 126 MW Dagachhu hydroelectric project in Bhutan. Tata Power also has a joint venture with Power Grid Corporation of India for a 1200 km Tala transmission line that will bring electricity from Bhutan to Delhi.
