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Reliance Power Limited announced today it has signed a commercial term sheet for a long-term Power Purchase Agreement with Green Digital Private Limited (GDL), owned by Royal Government of Bhutan’s Druk Holding and Investments Limited.
The shares of Reliance Power Limited were trading at ₹45.56 down by ₹0.49 or 1.09 per cent on the NSE today at 9.41 am.
The project entails a capital outlay of up to ₹2,000 crores under Build-Own-Operate (BOO) model, representing the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date, the company stated in an official statement here.
Reliance Power has commenced the Engineering, Procurement, and Construction (EPC) tendering process, adhering to international competitive bidding standards to ensure optimal technical execution and cost efficiency.
The project will be implemented in phases over the next 24 months, significantly expanding Bhutan’s renewable energy portfolio beyond its traditional hydropower resources.
The company has also initiated engagement with leading financial institutions to structure sustainable, long-tenor project finance solutions, focused on optimizing capital structure and enhancing overall financing efficiency.
The landmark solar investment in Bhutan underscores Reliance Group’s strategic focus on expanding its renewable energy portfolio, while reinforcing its long-term commitment to strengthening India-Bhutan economic cooperation.
This agreement builds on the strategic partnership formed in October 2024 between Reliance Enterprises (jointly promoted by Reliance Power and Reliance Infrastructure) and Druk Holding and Investments. That partnership also includes plans for the execution and operation of the 770 MW Chamkharchhu-I hydroelectric project.
Reliance Power, part of the Reliance Group, currently operates a portfolio of 5,305 megawatts, including the 3,960 megawatt Sasan Power plant. The company’s clean energy pipeline now includes 2.5 GWp solar and more than 2.5 GWhr battery energy storage systems.
Published on May 19, 2025
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