Tata Power and Druk Green Power unite for Bhutan’s Khorlochhu Hydropower Project

Tata Power has announced a significant partnership with Druk Green Power Corporation Ltd. (DGPC) for the development of the 600 MW Khorlochhu Hydropower Project in Bhutan.

In a strategic move to bolster renewable energy efforts and strengthen regional energy security, Tata Power, one of India’s premier integrated power companies, has joined forces with Bhutan’s Druk Green Power Corporation Ltd. This collaboration aims to construct the Khorlochhu Hydropower Project, located in the scenic Trashiyangtse District along the Kholongchhu River in Eastern Bhutan. Supported by both the Royal Government of Bhutan and the Government of India, the Khorlochhu Hydropower Project is set to enhance Bhutan’s electrical grid capacity, while also contributing to India’s shift towards renewable energy sources.

The Khorlochhu Hydropower Project, involving a substantial 40% equity investment by Tata Power, is expected to cost around Rs. 6900 Crore, inclusive of financing charges. With all necessary approvals already secured, the construction of the Khorlochhu Hydropower Project is slated to commence immediately, spanning an estimated timeline of five years. This initiative not only reflects the ongoing partnership between Tata Power and DGPC, following their previous collaboration on the 126 MW Dagachhu Hydropower Plant, but also signifies a larger commitment to sustainable energy practices.

The Khorlochhu Hydropower Project involves a substantial 40% equity investment by Tata Power

Dr. Praveer Sinha, CEO & MD of Tata Power, highlighted the strategic importance of this alliance, stating, “The development of the Khorlochhu Hydropower Project in Bhutan will provide energy security to the region and marks a significant step towards building a sustainable energy landscape.” Furthermore, Mr. Dasho Chhewang Rinzin, MD of DGPC, emphasized the Khorlochhu Hydropower Project’s role in bolstering Bhutan’s economic development and energy security as the nation aims to achieve a High Income GNH Economy by 2034.

In addition to the project’s domestic benefits, the Khorlochhu Hydro Power Ltd will also engage in long-term Power Purchase Agreements (PPA) with Tata Power Trading Corporation Ltd for the export of surplus power during the summer months to the Indian market, and with Bhutan Power Corporation Ltd for domestic power sales in the winter.

This venture is part of Tata Power’s broader “Sustainable is Attainable” initiative, which underscores the company’s dedication to achieving carbon neutrality and promoting the use of alternative clean energy sources. The partnership also complements existing collaborations, such as the joint venture with Power Grid Corporation of India Limited for the 1,200 km long Tala transmission line, facilitating electricity transport from Bhutan to Delhi.