Adani Group and Bhutan's Druk Green Power Partner to Unlock 5GW Hydropower Potential

The Adani Group and Bhutan’s state-owned Druk Green Power Corporation (DGPC) have entered a landmark partnership to develop 5 gigawatts (GW) of hydropower projects in Bhutan, marking a critical step toward regional energy security and sustainable growth. The collaboration, formalized through a Memorandum of Understanding (MoU) in May 2025, combines Bhutan’s untapped hydropower potential with Adani’s global expertise in renewable energy development.

A Strategic Partnership for Renewable Growth

The 5GW initiative builds on an existing joint venture—the Wangchhu Hydropower Project (570/900 MW)—where DGPC holds a 51% majority stake and Adani retains 49%. The expanded partnership will now target additional hydropower and pumped storage projects, developed in phases over the coming years. This aligns with Bhutan’s Renewable Energy Roadmap 2040, which aims to add 20GW of renewable capacity by 2040, leveraging international partnerships to diversify into solar and geothermal energy.

The project’s success hinges on Adani’s role in ensuring reliable power offtake and grid integration with India’s commercial energy markets. Bhutan currently exports most of its hydropower to India, and this partnership will amplify that flow, reinforcing Bhutan’s position as a key regional supplier of green energy.

The Financial and Strategic Landscape

While the MoU does not specify exact investment figures, the project’s scale underscores its potential to attract significant capital. Adani’s expertise in project financing and market access—evident in its 1.5GW thermal power contract secured in India’s Uttar Pradesh state—will be critical. The partnership also benefits from strong government support: both Bhutan and India view it as a cornerstone of bilateral energy cooperation.

Adani Group’s stock has shown resilience amid global market volatility, reflecting investor confidence in its renewable energy ambitions. This project further diversifies its portfolio, aligning with global trends toward clean energy.

Challenges and Opportunities

The initiative faces hurdles, including environmental approvals and the complexities of cross-border energy infrastructure. However, Bhutan’s existing hydropower infrastructure—currently contributing ~2,000 MW of installed capacity—provides a solid foundation. Additionally, the Royal Government of Bhutan’s commitment to carbon neutrality and India’s push for energy security mitigate geopolitical risks.

Why Investors Should Pay Attention

1. Scalable Clean Energy: The 5GW target represents a 25% increase in Bhutan’s current hydropower capacity, positioning it as a regional renewable energy hub.
2. Market Access: Adani’s integration capabilities ensure Bhutan’s energy reaches India’s booming grid, where demand is projected to grow by 6% annually through 2030.
3. Long-Term Returns: Hydropower projects typically offer stable, long-term returns, with Bhutan’s 90%+ export revenue dependency on hydropower underscoring its economic viability.

Conclusion: A Pioneering Step in Green Energy Cooperation

The Adani-DGPC partnership is not merely an infrastructure deal but a strategic move to address Asia’s energy needs sustainably. With Bhutan’s 2040 roadmap targeting 20GW of renewables and Adani’s ambition to expand to 30.67GW by 2030, this collaboration could catalyze broader regional investment in hydropower.

For investors, the project offers exposure to a sector with low operational risk and high regulatory support, particularly as governments worldwide prioritize decarbonization. As Adani’s stock performance () demonstrates, capitalizing on such partnerships can yield long-term gains.

In a world increasingly reliant on clean energy, this initiative sets a precedent for how private-sector innovation and public-sector policy can converge to power sustainable growth. For Bhutan and India, it’s a step toward energy independence—and for investors, a chance to bet on the future of renewables.