Tata Power, one of India’s leading integrated power firms, has partnered strategically with Druk Green Power Corporation Ltd (DGPC) of Bhutan to create the 600 MW Khorlochhu Hydropower project, with backing from the Royal Government of Bhutan and the Government of India.
The project is anticipated to serve the expanding power requirements of Indian utilities by meeting Bhutan’s growing winter electricity demands and exporting power to India during the summer.
Long-term Power Purchase Agreements (PPAs) will be signed by Khorlochhu Hydro Power Ltd. with Bhutan Power Corporation Ltd. for the domestic selling of electricity during the winter months and with Tata Power Trading Corporation Ltd. for the export of excess summer power to the Indian market.
The joint venture between Tata Power and Power Grid Corporation of India Limited, which manages the 1,200 kilometer Tala transmission line that carries electricity from Bhutan to Delhi, is more proof of the company’s dedication to sustainability.
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In order to develop the 600 MW Khorlochhu Hydropower Project, Druk Green Power Corporation Ltd. (DGPC) of Bhutan and Tata Power, one of India’s top integrated power firms, have formed a strategic alliance.
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Praveer Sinha, CEO & MD, Tata Power said,“This is a landmark alliance for Tata Power and Druk Green Power Corporation. The development of the 600 MW Khorlochhu Hydropower Project in Bhutan will provide energy security to the region. This project marks a significant step towards building a sustainable energy landscape underscoring Tata Power’s commitment to a greener future.”
Situated on the Kholongchhu river in Eastern Bhutan’s Trashiyangtse District, the project is expected to cost approximately ₹6,900 crore and includes a 40% equity commitment from Tata Power. After receiving the necessary legislative clearances, construction is scheduled to start right away and take five years to complete.
Dasho Chhewang Rinzin, MD, DGPC said, “This strategic partnership with Tata Power to develop the Khorlochhu hydropower project is a significant step towards Bhutan’s energy security and economic development as the country seeks to become a High income GNH Economy by 2034. This partnership with Tata Power opens new avenues for sourcing investments to harness Bhutan’s huge hydropower and solar potential. It further ensures access to and complements the evolving Indian energy market for surplus generation in the summer months with opportunities to expand in future to the regional market.”
About Druk Green
Druk Green Power Corporation Limited (DGPC), a division of Druk Holding and Investments Limited, has expanded rapidly, managing hydropower assets in Bhutan and holding an ISO certification. It currently oversees embedded generation and the hydropower plants at Basochhu, Chhukha, Kurichhu, Mangdechhu, and Tala.
About Tata Power
Tata Power has 14,294 MW of installed/managed capacity through its subsidiaries and joint ventures. The Company generates renewable and conventional power, including hydro and thermal energy, transmits and distributes, and trades.
