Bhutan’s leading renewables company Druk Green Power Corporation (DGPC) has signed a memorandum of understanding with Kolkata-based Carbon Resources Private Limited (CPRL) to jointly pursue renewable energy projects.
Under the terms of the partnership, DGPC and CPRL will collaborate on developing new solar and hydropower projects in Bhutan with capacities ranging between 100 MW and 250 MW.
DGPC will be responsible for sharing project information, past studies and regulatory frameworks to assist CRPL in undertaking required technical, commercial and financial assessments of potential projects.
Identified sites will then be developed through one or more special purpose vehicles incorporated in Bhutan as joint ventures between the two parties. The memorandum of understanding proposes a debt-equity financing structure of 70:30 between DGPC and CPRL.
The signing ceremony was attended by Bhutan’s Minister for Energy and Natural Resources, Lyonpo Gem Tshering, who said memorandums of understanding for more than 12 GW of generation capacity have been signed in the country to date.
Bhutan has a target of reaching 25 GW of installed generation capacity by 2040. A World Bank report published last June reported the country’s total generation capacity stood at 2.5 GW by the end of 2024, made up almost entirely of hydropower plants.
Bhutan’s first utility-scale solar plant, a 17.38 MW array located towards the centre of the country, was commissioned last July. A month later, a consortium consisting of local firm Rigsar Construction and India’s HILD Energy was awarded a contract to develop the 120 MW Jamjee solar project.
In December, DGPC opened a tender for the 120 MW Wobthang solar project. The project’s feasibility study and consultation meetings have since been completed, with DGPC planning to award the contract by June. The project is scheduled to begin construction this September and with the build expected to take around 18 months, is pencilled for operations during the first half of 2028.
Bhutan’s current national energy policy, published last year, aims to add 5 GW of solar capacity by 2040.
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