India Power Corporation to develop 70 MW solar project in Bhutan

India Power Corporation Limited (IPCL) has signed a strategic partnership with Bhutan’s Green Energy Power Private Limited to develop a 70 MW solar power project in Paro district , marking a significant step in India’s role in expanding Bhutan’s renewable energy capacity.

The project, part of IPCL’s larger plan to install 1.5 GW of solar capacity in Bhutan over the next five years, aims to enhance the Himalayan nation’s energy mix beyond its traditional reliance on hydropower . The Tenchuka site, chosen for its favorable technical conditions, spans around 200 acres of south-facing land with high solar irradiation and lies just 3.5 km from the Jamjee 220/33 kV substation, enabling efficient power evacuation.

Bhutan’s energy demand is projected to more than double in the coming two years, driven by the development of projects like the Gelephu Mindful City project , the expansion of energy-intensive industries such as ferrosilicon, and rising consumption from digital infrastructure and crypto-mining operations. By adding solar capacity, projects like Tenchuka will help Bhutan diversify its energy sources, meet growing domestic demand, and move closer to its target of 25,000 MW of installed power capacity by 2034, including 5,000 MW from solar energy.

India’s contribution to Bhutan’s renewable energy sector is already significant. Tata Power , in partnership with Druk Green Power Corporation (DGPC), is developing around 5,000 MW of clean energy projects. Adani Power has signed an MoU with DGPC to explore hydropower capacity of up to 5,000 MW, while Reliance Power, in collaboration with Druk Holding and Investments, is building a 500 MW solar project alongside plans for additional hydropower capacity. The Tenchuka project will be Bhutan’s first independent power producer (IPP) solar initiative, highlighting the growing role of Indian private players in strengthening Bhutan’s energy infrastructure.

Somesh Dasgupta, whole-time director of IPCL, said, “The Tenchuka project is more than a capacity addition; it reflects our commitment to cross-border energy cooperation and our goal of becoming a 1.5 GW solar player by 2030.” Tandi Dorji, founder of Green Energy Power Private Limited, added that the project is a milestone for Bhutan’s renewable energy sector.

Established in 1919, IPCL is an integrated power utility with operations spanning distribution, smart metering, thermal generation, and renewable energy. Over 70% of its portfolio is now in green energy, reflecting a strong focus on sustainable development and regional energy collaboration.