Reliance Power on Monday announced that it has signed a commercial term sheet for long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL), a company owned by the government of Bhutan. Reliance Power and DHI will jointly develop Bhutan’s largest solar power project through a 50:50 venture, with an installed capacity of 500 MW. The initiative is expected to play a pivotal role in advancing regional clean energy integration, and enhancing cross-border infrastructure collaboration across South Asia, it said in a regulatory filing.
The project entails a capital outlay of up to Rs 2,000 crore under Build-Own-Operate (BOO) model, representing the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date.
Reliance Power has commenced the Engineering, Procurement, and Construction (EPC) tendering process, adhering to international competitive bidding standards to ensure optimal technical execution and cost efficiency. The company has also initiated engagement with financial institutions to structure sustainable, long-tenor project finance solutions, focused on optimizing capital structure and enhancing overall financing efficiency.
Reliance Power’s total clean energy pipeline stands at 2.5 GWp solar and >2.5 GWhr BESS.
In the exchange filing, the project will be implemented in phased tranches over the next 24 months, closely aligned with Bhutan’s strategic sustainability framework, and broader regional energy transition agenda across South Asia.
Earlier in October 2024, Reliance Enterprises, jointly promoted by Reliance Power, and Reliance Infrastructure initiated a strategic partnership with Druk Holding and Investments Limited to develop solar and hydropower projects in Bhutan. As part of this agreement, Reliance Enterprises and Druk Holding and Investments will jointly develop a 500 MW solar power project.