New Delhi: Bhutan and the World Bank on Tuesday signed financing agreements worth USD 515 million for Dorjilung Hydropower Project Ltd (DHPL), which is being developed by Tata Power and Druk Green Power Corporation. The 1,125 MW project will be Bhutan’s largest hydropower project under a public-private partnership (PPP) model once it becomes operational. DHPL is 60 percent owned by Bhutan’s Druk Green Power Corporation (DGPC) and 40 percent by Tata Power.
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With nearly 80 percent of its 4,500 GWh annual generation set to be supplied to India, the project is expected to support rising peak demand, especially during summer, while also allowing Bhutan to expand clean energy exports.
In a statement, the World Bank said the project will “boost clean energy cooperation between India and Bhutan and strengthens regional energy security.”
Tata Power CEO and MD Praveer Sinha said, “The project will strengthen regional energy security and deepen India-Bhutan clean energy cooperation.”
According to the statement, the project will account for about one-third of Bhutan’s total energy generation, support economic growth through access to affordable electricity and clean energy exports, and create jobs.
Located on the Kurichhu River in eastern Bhutan, the project will generate more than 4,500 GWh of clean electricity annually. It is expected to help close Bhutan’s seasonal energy gap during the winter months and provide surplus power for export to India in the summer and rainy season.
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World Bank Vice President for the South Asia Region Johannes Zutt said, “Besides providing affordable and reliable power to support growth and job creation, the project will reduce energy import costs and increase energy export revenues for Bhutan, while also lowering carbon emissions and diversifying energy sources across the South Asia region.”