Adani Power has finalized a joint venture with Bhutan’s Druk Green Power Corporation for the 770 MW Chamkharchhu-I Hydropower Project. Operating under a 49:51 equity structure, the project marks a key expansion for Adani into international renewable energy. Construction is set to begin in H1 2027 under a 30-year BOOT model, signaling significant long-term generation visibility for the company's portfolio.
Adani Power Signs 770 MW Hydropower Deal in Bhutan
Equity Structure: 49:51 Joint Venture between Adani Power and Druk Green Power Corp.
Project Capacity: 770 MW peaking run-of-river facility scheduled to start construction in H1 2027.
Reader Takeaway: Expands renewable portfolio via international partnership while adding long-term visibility despite international execution and capex risks.
What just happened
Adani Power Ltd (APL) has officially signed a Shareholder Agreement (SHA) with Druk Green Power Corp. Ltd. (DGPC) to develop the 770 MW Chamkharchhu-I Hydropower Project in Bhutan. The venture is structured as a public company in Bhutan with a 49:51 equity split between APL and the state-owned DGPC. The agreement follows a formal signing ceremony held on October 5, 2026.
Why this matters
This deal represents a core pillar of the Adani Group’s broader commitment to develop 5,000 MW of hydropower capacity in Bhutan. For Adani Power shareholders, this provides access to a long-term revenue stream through a 30-year concession model (Build, Own, Operate, and Transfer). The project serves a dual purpose: securing electricity for Bhutan during winter and enabling green energy exports to India during the summer months.
The backstory
This collaboration is the second major milestone in the relationship between Adani and the Royal Government of Bhutan, following the 570 MW Wangchhu Hydroelectric Project announced in September 2025. It aligns with the company's strategy to diversify its energy mix by incorporating large-scale renewable hydropower into its traditionally thermal-heavy generation portfolio.
Risks to watch
As with all large-scale infrastructure projects in international jurisdictions, investors should monitor the regulatory landscape in Bhutan and potential cross-border policy shifts. Additionally, the six-year construction timeline, which begins in H1 2027, will require disciplined capital expenditure management to ensure the project remains on schedule and within budget projections.
What to track next
The primary monitorables include the formal commencement of construction in the first half of 2027 and the achievement of key technical milestones during the six-year project delivery phase. Board-level coordination between the three directors appointed by APL and the three appointed by DGPC will also be critical to operational progress.