Reliance Group, Druk Holding ink deal for renewable energy projects in Bhutan

MUMBAI: Anil Ambani’s

Reliance Group

has partnered with

Druk Holding

and Investments (DHI), the commercial arm of the Royal Govt of

Bhutan

, to develop solar and hydropower projects in the country.
As part of the deal, Reliance Group has established a new entity, Reliance Enterprises, to focus on green energy investments in Bhutan. Reliance Enterprises is jointly promoted by Reliance Infrastructure and Reliance Power.
The agreement includes the development of a 500 MW

solar project

and a 770 MW hydropower project.

The solar initiative will be executed in two phases of 250 MW each and will be located in Gelephu Mindfulness City, a Special Administrative Zone. The

hydropower project

, Chamkharchhu-1, will be developed as a run-of-the-river project under Bhutan’s concession model.
The agreement was signed on Oct 2, 2024, by executives from Reliance Power and DHI. The deal marks the largest

foreign direct investment

(FDI) by a private company in Bhutan’s

renewable energy

sector.

According to officials, the solar project will help mitigate the impacts of climate change, with ongoing technical assessments conducted by experts from both companies. Once completed, it will be Bhutan’s largest solar plant.
The Chamkharchhu-1 hydro project is also a significant development, given Bhutan’s current power generation capacity of 2,452 MW. Both projects support Bhutan’s commitment to achieving

net-zero emissions

.
Reliance Group said it aims to contribute to Bhutan’s

sustainable development

through these initiatives, which also include smart distribution and metering systems.
Druk Holding manages 24 domestic companies across various sectors for Bhutan’s economic benefit. The projects align with Bhutan’s Gross National Happiness Index, focusing on economic growth and well-being.

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