1125 MW Dorjilung Project to Boost Clean Energy Trade Between India and Bhutan
The project is being jointly developed by Tata Power and Druk Green Power Corporation, marking a significant milestone in cross-border clean energy investments.
Largest PPP Hydropower Project in Bhutan
The 1125 MW Dorjilung Hydropower Project will be Bhutan’s largest hydropower project under a public-private partnership (PPP) model.
Ownership structure:
- 60%: Druk Green Power Corporation (DGPC)
- 40%: Tata Power
This collaboration reflects a growing shift towards PPP-driven infrastructure development in the region, combining Bhutan’s natural resources with India’s technical and financial expertise.
Power Supply to India: Strategic Energy Link
Once operational, the project is expected to generate approximately 4,500 GWh annually, with nearly 80% of the electricity exported to India.
This will:
- Help meet rising peak demand in India, especially during summer months
- Strengthen cross-border electricity trade
- Improve grid stability and energy security
India remains Bhutan’s largest energy partner, and such projects play a crucial role in deepening bilateral ties.
Driving Clean Energy Transition
The Dorjilung project aligns with global and regional climate goals by promoting renewable hydropower generation.
Key benefits include:
- Reduction in carbon emissions
- Expansion of clean energy capacity
- Support for sustainable development in the Himalayas
Hydropower continues to be a cornerstone of Bhutan’s economy and a key export driver.
Economic Benefits for Bhutan
The project is expected to deliver long-term economic gains for Bhutan, including:
- Increased export revenues from electricity
- Job creation during construction and operations
- Infrastructure development in remote regions
By leveraging its hydropower potential, Bhutan aims to strengthen its economic growth while maintaining environmental sustainability.
Role of the World Bank in Infrastructure Financing
The World Bank’s participation underscores global confidence in the project.
The funding will support:
- Project construction and development
- Financial stability and risk mitigation
- Sustainable infrastructure financing
Such multilateral backing is crucial for large-scale energy projects in emerging economies.