Tata Power, DGPC cross 5 GW milestone with new Bhutan hydro project
By Cygnus | 08 May 2026
Summary
- Tata Power and Bhutan’s Druk Green Power Corporation (DGPC) have added the 404 MW Nyera Amari hydropower project to their partnership pipeline, taking total planned capacity beyond 5 GW.
- The agreement was signed in Thimphu in the presence of Bhutanese Prime Minister Lyonchhen Tshering Tobgay, underlining the project’s strategic importance.
- The expansion follows recent World Bank support for the Dorjilung hydropower project, strengthening financing prospects for Bhutan’s clean energy ambitions.
THIMPHU/NEW DELHI, May 8, 2026 — Tata Power and Bhutan’s Druk Green Power Corporation (DGPC) have expanded their cross-border clean energy partnership with the addition of the 404 MW Nyera Amari I & II Integrated Hydropower Project, taking the total identified pipeline capacity to more than 5 GW.
The two companies signed an amendment to their existing memorandum of understanding (MoU) in Thimphu on Friday. The ceremony was attended by Bhutanese Prime Minister Lyonchhen Tshering Tobgay and senior officials from both sides.
With the inclusion of Nyera Amari, the total capacity under the Tata Power-DGPC partnership has increased to 5,033 MW, surpassing the earlier 4.5 GW target announced in 2024.
Expanding Bhutan’s hydropower ambitions
The collaboration now includes several major hydropower developments across Bhutan, covering run-of-the-river, reservoir and pumped storage projects.
The 5 GW pipeline at a glance
| Project | Type | Capacity |
|---|---|---|
| Gongri & Jeri | Reservoir & pumped storage | 2,540 MW |
| Dorjilung | Run-of-the-river | 1,125 MW |
| Khorlochhu | Run-of-the-river | 600 MW |
| Nyera Amari I & II | Integrated hydropower | 404 MW |
| Chamkharchhu IV | Run-of-the-river | 364 MW |
| Total | 5,033 MW |
The latest expansion comes shortly after the World Bank approved financing support for the 1,125 MW Dorjilung hydropower project, one of the largest developments in the partnership portfolio.
Tata Power CEO and Managing Director Dr. Praveer Sinha said the inclusion of the Nyera Amari project reflects the long-term commitment of both countries toward regional clean energy development and Bhutan’s broader hydropower goals.
DGPC Managing Director Dasho Chhewang Rinzin said the partnership would strengthen Bhutan’s role as a renewable energy supplier for South Asia while supporting economic growth and infrastructure development in the country.
Market and regional significance
Hydropower remains central to Bhutan’s economy and export revenues, with India serving as the primary buyer of Bhutanese electricity. Analysts say the expanded pipeline could improve regional energy security while supporting India’s transition toward lower-carbon energy sources.
The inclusion of pumped storage capacity is also viewed as strategically important, as it can help balance intermittent renewable energy such as solar and wind across regional grids.
Shares of Tata Power were trading lower during Friday’s session, broadly in line with weakness in the wider Indian equity market.
Why this matters
- Regional energy integration: The projects deepen electricity cooperation between India and Bhutan through long-term clean power supply arrangements.
- Global financing support: Backing from multilateral institutions such as the World Bank improves investor confidence in large hydropower infrastructure projects.
- Grid stability benefits: Pumped storage facilities can help stabilize renewable-heavy power systems by storing excess electricity for peak demand periods.
- Economic growth driver: Hydropower exports remain a major source of revenue and economic development for Bhutan.
FAQs
Q1. What is the new project added to the Tata Power-DGPC partnership?
The companies have added the 404 MW Nyera Amari I & II Integrated Hydropower Project to their existing partnership pipeline.
Q2. What is the total capacity of the partnership now?
The combined pipeline capacity has reached 5,033 MW across multiple hydropower projects in Bhutan.
Q3. Why is the World Bank financing important?
World Bank support helps reduce financing risks for large-scale hydropower developments and can accelerate project execution.
Q4. Why is pumped storage important?
Pumped storage projects help manage electricity demand fluctuations and support the integration of renewable energy into the grid.