Reliance Power Signs PPA with Bhutan’s GDL for 500 MW Solar Project

Reliance Power Limited, India’s largest private-sector power generator, has entered a commercial arrangement for a long-term Power Purchase Agreement (PPA) with Green Digital Power Private Limited (GDL), Bhutan.

GDL is a government owned corporation belonging to Druk Holding and Investments Ltd (DHI), an investment company that is wholly owned by the Royal Government of Bhutan.

This association also signals a breakthrough in the clean energy space in South Asia for both Reliance Power and DHI, which are set to form a 50:50 joint venture company to implement the largest solar power plant in Bhutan.

The project, which is of 500MW capacity with a total investment of up to ₹2,000 crore, is the biggest FDI into Bhutan’s solar power generation space so far.

Project Highlights:

The solar energy project will be built on the Build-Own- Operate (BOO) basis and is likely to contribute to the interconnection of cross-border clean energy generation, and to infrastructure development and cooperation in south Asia.

The EPC bidding process has commenced (as per global competitive EPC bidding standards for efficiency and executional excellence).

At the same time, the company is working with significant financial institutions to obtain the long-term, sustainable project financing that makes sense over time, in its mission of maintaining an optimal capital base.

Strengthening India-Bhutan Energy Ties:

This investment is in line with the Reliance Group’s commitment to expand its renewable energy capacity to 1,000MW as part of its asset-light business strategy, in this case adding 750MW to its existing green portfolio.

It will also bring economic and strategic benefits to both countries, India and Bhutan.” It will be integrated with the National Grid and contribute to Bhutan’s objective of achieving self-sufficiency in renewable energy and the overall electrification of the country to meet future domestic demand.

The solar programme will be implemented in phases over the next 2 years and is likely to usher in great improvement in grid stability as well as renewable energy addition in the Kingdom of Bhutan.

The joint development is based on the earlier MoU signed in October 2024 (2018 as per this news) between Reliance Enterprises (a company promoted by Reliance Power and Reliance Infrastructure) and DHI to jointly explore and develop clean and green energy projects in the Kingdom of Bhutan. This includes the 770 MW Chamkharchhu-I Hydropower Project, a run-of-the-river hydroelectric power project, the development of which is based on a long-term concession model, consistent with Bhutan’s energy growth trajectory.

Stock Performance: 

Reliance Power shares have gained a total of 76% in the last year, and 4.18% in the last month.

About Reliance Power

Reliance Power Limited, a part of the Reliance Group, is India’s leading private sector power generation company, with a consolidated generation capacity of 5,305 megawatts (MW).This links to the 3,960 MW Sasan Power project, which is the world’s largest integrated coal-mining and power plant. The firm has also developed a robust pipeline of 2.5 GWp of solar capacity and +2.5 GWh of battery energy storage systems (BESS) under development, making it a strong participant in India’s renewable story.

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Source: https://nsearchives.nseindia.com/corporate/RPOWER_19052025085335_MediaRelease_Bhutan_PPA.pdf