Adani Group marks start of 570 MW Wangchhu hydro project in Bhutan

The Adani Group and Bhutan’s Druk Green Power Corporation (DGPC) have officially commenced the 570 MW Wangchhu Hydroelectric Project in Bhutan. The foundation stone was laid in January 2026, with Bhutan’s Prime Minister Tshering Tobgay and Adani Group Chairman Gautam Adani present, signaling strong political and strategic backing for the venture.

The project, costing around ₹60 billion (₹6,000 crore), is being executed through a joint venture, with DGPC holding a 51% majority stake and Adani 49%. Construction is expected to begin in 2026 and be completed within five years, making it operational by around 2031. Wangchhu is the first project under a broader 5,000 MW hydropower collaboration agreed between Adani Group and DGPC in May 2025.The 51:49 ownership split ensures Bhutan maintains strategic control but requires effective joint management and decision-making. Long-term financial stability will also depend on power purchase agreements and grid integration.

Designed as a peaking run-of-river plant, the Wangchhu project will help Bhutan manage seasonal variations in the Wangchhu River flow. During winter months, when water levels are lower, the plant will ensure that Bhutan’s domestic electricity needs, for homes, industries, and government facilities, are fully met.

At the same time, a substantial portion of the electricity will be exported to India. Bhutan has historically exported 70-80% of its hydroelectric output from major projects such as Chukha (336 MW), Tala (1,020 MW), and Mangdechhu (720 MW). These exports provide Bhutan with a steady revenue stream and foreign exchange, while supplying India with low-cost renewable energy. The Wangchhu power is expected to reach eastern and northeastern states, including West Bengal and Assam , and feed into the national grid wherever demand is high.

From a strategic perspective, the project strengthens Bhutan’s energy security and economic revenue, while helping India expand its clean energy capacity, manage peak loads, and move toward renewable energy targets. It also deepens bilateral energy cooperation and reinforces India’s role as Bhutan’s primary energy partner.