Adani Group begins work on 570 MW Wangchhu hydropower project in Bhutan

THIMPHU — The Adani Group has formally commenced construction of the 570 MW Wangchhu Hydro Electricity Project in Bhutan, marking a major step forward in India–Bhutan energy cooperation and cross-border renewable development.1 The foundation stone for the project was laid on Sunday, January 4, 2026, in the presence of Bhutanese Prime Minister Tshering Tobgay and Adani Group Chairman Gautam Adani.

The project is being developed through a joint venture structure, with Bhutan’s state-owned Druk Green Power Corporation (DGPC) holding a 51% controlling stake and the Adani Group owning the remaining 49%. The ownership model reflects Bhutan’s long-standing approach of retaining majority control over strategic hydropower assets while partnering with experienced private players for execution and market access.

Scaling the Himalayan Energy Potential

With an estimated investment of about ₹60 billion (₹6,000 crore), the Wangchhu project is the first large-scale initiative under a wider Memorandum of Understanding (MoU) signed in May 2025. That agreement outlines plans to jointly develop up to 5,000 MW of hydropower capacity across Bhutan over the coming years, significantly expanding the country’s role as a clean energy supplier to the region.

Gautam Adani described the project as a milestone in bilateral energy collaboration, emphasizing its long-term value rather than just near-term capacity addition. The plant is expected to be completed within five years and will supply renewable power while supporting local employment, infrastructure development, and downstream economic activity.

Strategic and Sustainable Growth

Beyond electricity generation, the project fits into Bhutan’s broader development philosophy, which prioritizes sustainability and balanced growth.9 Adani has also highlighted the alignment of the venture with Bhutan’s long-term vision—including the Gelephu Mindfulness City initiative—and India’s clean energy ambitions, underscoring the strategic importance of hydropower in meeting decarbonization goals across South Asia.

For the Adani Group, Wangchhu strengthens its growing footprint in renewable energy beyond India, while for Bhutan, it reinforces hydropower as a stable source of revenue and regional influence amid rising demand for clean power.

Summary

The Adani Group and Bhutan’s Druk Green Power Corporation (DGPC) have launched the 570 MW Wangchhu Hydro Electricity Project, backed by an investment of around ₹60 billion. Structured as a joint venture with majority ownership held by DGPC, the project is expected to be completed within five years and forms part of a larger plan to develop 5,000 MW of hydropower in Bhutan, deepening long-term India–Bhutan energy ties.

Frequently Asked Questions (FAQs)

Q1: What is the Wangchhu Hydro Electricity Project? It is a 570 MW hydropower project in Bhutan, developed as a joint venture between the Adani Group and DGPC.

Q2: Who owns the project? DGPC holds a 51% stake, while the Adani Group owns the remaining 49%.

Q3: What is the investment size? The project involves an estimated investment of ₹60 billion (₹6,000 crore).

Q4: When is it expected to be completed? Construction is planned for completion within five years of the groundbreaking (by 2031).