Tata Power and the Druk Green Power Corporation (DGPC) recently signed key commercial agreements. These memoranda will facilitate the development of the Dorjilung hydropower project, which is on track to become Bhutan’s second-largest hydroelectric installation. This lofty, aspirational project spans the Kurichhu River in Mongar, Bhutan. It is notable as the largest public-private partnership (PPP) hydro project in the national history.
The Dorjilung project would have six units, each producing 187.5 megawatts with a total capacity of 1,125 megawatts. At an estimated cost of over Rs131 billion (billion = 10 Crores), Dorjilung is considered the largest recent investment in Bhutan’s energy sector. This unique run-of-the-river project features six-hour pondage for peaking, enabling water to be stored and energy generated during high-demand periods. The facility is planned to enter commercial operation by September 2031.
Commitment to Clean Energy
The Dorjilung project is important for filling Bhutan’s growing energy needs. At the same time, it helps India meet its clean energy goals. Over 90% of the power produced at Dorjilung will be exported directly to India. This step deepens the two countries’ strategic energy partnership. This undertaking is part of Bhutan’s larger goal of building 5 gigawatts of clean energy capacity.
“The Dorjilung project reinforces our commitment to accelerating clean energy development in the region. As Bhutan’s largest hydro project under the PPP model, it is designed to fully support Bhutan’s domestic energy aspirations while also enabling the export of surplus clean power to India, strengthening regional energy security.” – Praveer Sinha
The project is a response to local energy demands. Finally, it advances regional energy cooperation, which boosts stability and sustainability across the South Asian energy landscape.
Strategic Partnerships
The concession agreement for Dorjilung was signed in Thimphu, and represented a watershed moment not just for Tata Power, but for the DGPC as well. This new partnership continues the successful collaborations of the past, such as the Khorlochhu project. At its core it reflects an unwavering determination to fully utilize Bhutan’s enormous hydropower potential.
“We are extremely happy to be moving ahead with the implementation of the Dorjilung project so soon after the Khorlochhu project in partnership with Tata Power. Bhutan’s huge hydropower potential positions it at the heart of South Asia’s clean energy future. Our strategic partnership with Tata Power on the Dorjilung project reflects Bhutan’s commitment to collaborative partnerships for regional progress.” – Dasho Chhewang Rinzin
This collaboration exemplifies how combining Bhutan’s rich hydropower resources with India’s technical expertise can set a global benchmark in green cooperation.
Future Prospects
Both Tata Power and DGPC are excited at the prospect of future collaborative projects. With Dorjilung’s success, we hope to pave the way for many more such initiatives. This batch of new projects will invigorate regional energy collaboration and foster low-carbon development.
Dorjilung is about more than generating clean energy. It’s a new and potentially progressive strategy to meet growing energy demands while doubling down on reducing harm to the environment. Bhutan, with abundant hydropower production, is looking to leverage its natural strengths. This action cements its place as a leader in clean energy in South Asia.