Bhutan’s Druk Green Power Corporation and India’s Carbon Resources Private Limited have agreed to collaborate on new solar and hydropower projects in Bhutan with capacities between 100 MW and 250 MW.
Bhutan’s leading renewable energy company, Druk Green Power Corporation (DGPC), has signed a memorandum of understanding with Kolkata-based Carbon Resources Private Limited (CPRL) to jointly pursue renewable energy projects.
Under the terms of the partnership, DGPC and CPRL will collaborate in developing new solar and hydropower projects in Bhutan with capacities ranging between 100 MW and 250 MW.
DGPC will be responsible for sharing project information, previous studies and regulatory frameworks to assist CRPL in conducting required technical, commercial and financial assessments of potential projects.
Identified sites will then be developed through one or more dedicated vehicles established in Bhutan as joint ventures between the two parties. The MoU proposes a debt-equity financing structure between DGPC and CPRL of 70:30.
The signing ceremony was attended by Bhutan’s Minister of Energy and Natural Resources, Lyonpo Gem Tshering, who said that memoranda of understanding for more than 12 GW of generation capacity have been signed in the country to date.
Bhutan aims to reach an installed generation capacity of 25 GW by 2040. A World Bank report published last June said the country’s total generating capacity at the end of 2024 was 2.5 GW and consisted almost entirely of hydropower plants.
Bhutan’s first utility-scale solar power plant, a 17.38 MW The array, located in the center of the country, was put into use last July. A month later, a consortium consisting of local company Rigsar Construction and India’s HILD Energy was awarded a contract to build the 120MW Jamjee solar project.
In December, DGPC opened a tender for the 120MW Wobthang solar project. The project’s feasibility study and consultation meetings have now been completed and DGPC plans to award the contract by June. Construction of the project is scheduled to start in September and with construction expected to last approximately 18 months, the project will be operational in the first half of 2028.
Bhutan’s current National Energy Policy, published last year, aims to add 5 GW of solar capacity by 2040.
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