In a major boost to regional clean energy cooperation, Bhutan and the World Bank on Tuesday signed financing agreements worth USD 515 million for the Dorjilung Hydropower Project Ltd (DHPL), a flagship initiative being jointly developed by Tata Power and Druk Green Power Corporation.
The 1,125 MW project, structured as a public-private partnership (PPP), will be Bhutan’s largest hydropower venture once operational. DHPL is a special purpose vehicle with 60% ownership held by Druk Green Power Corporation and 40% by Tata Power.
Strategically significant for both nations, the project is expected to generate nearly 4,500 GWh of electricity annually. Around 80% of this output will be exported to India, helping meet rising peak power demand—particularly during summer—while enhancing Bhutan’s capacity for clean energy exports.
According to the World Bank, the initiative will strengthen regional energy security and deepen India-Bhutan cooperation in sustainable power. Tata Power CEO and MD Praveer Sinha highlighted that the project marks a key step in advancing clean energy ties between the two countries.
Situated on the Kurichhu River in eastern Bhutan, the hydropower plant is also expected to address Bhutan’s seasonal energy shortages during winter while generating surplus power during monsoon and summer months for export.
Johannes Zutt noted that the project will not only provide affordable and reliable energy but also reduce import costs, increase export revenues, and lower carbon emissions across the South Asia region.
The DHPL project is projected to contribute nearly one-third of Bhutan’s total power generation, driving economic growth, job creation, and long-term energy sustainability.
