Tata Power, a major Indian integrated power company, has formed a strategic partnership with Druk Green Power Corp.
Ltd (DGPC) of Bhutan to develop the 600 MW Khorlochhu hydropower project. The project, located in Eastern Bhutan, aims to address Bhutan’s growing electricity needs and contribute to India’s renewable energy transition.
Partnership Details
The collaboration involves a 40% equity investment by Tata Power in the Public Private Partnership Company, Khorlochhu Hydro Power Ltd.
The estimated project cost, including financing charges, is approximately Rs. 6900 crore (around USD 822 million) with a construction timeline of five years.
All necessary approvals have been obtained, allowing construction to begin immediately.
Extending the Partnership
This partnership builds upon an existing collaboration between Tata Power and DGPC on the 126 MW Dagachhu hydropower plant in Bhutan.
Once operational, the Khorlochhu project will significantly bolster Bhutan’s winter electricity supply, which is facing increasing demand.
Additionally, surplus electricity generated during summer months will be exported to India, supporting the country’s rising power needs.
Commitment to Sustainable Energy
This significant investment highlights Tata Power’s dedication to its “Sustainable is Attainable” initiative, which focuses on achieving carbon neutrality and providing clean energy alternatives to India.
MoU Signed, Definitive Agreement Forthcoming
A Memorandum of Understanding (MoU) has been signed between Tata Power and DGPC, with the Definitive Agreement expected to be executed soon.
Leadership Statements
Dr. Praveer Sinha, CEO & MD of Tata Power, expressed enthusiasm for the project, stating that it will enhance energy security in the region and represents a crucial step towards a greener future.
Dasho Chhewang Rinzin, MD of DGPC, emphasized the project’s importance for Bhutan’s energy security and economic development, opening doors for future investments in hydropower and solar energy.
Power Purchase Agreements
Khorlochhu Hydro Power Ltd. will enter into long-term power purchase agreements (PPAs) with Tata Power Trading Corp. Ltd. for exporting surplus summer power to India, and with Bhutan Power Corp. Ltd. for domestic power sales during winter.
Previous Successful Collaboration
Tata Power also has a successful joint venture with Power Grid Corp. of India Limited, operating the 1200 km Tala transmission line that delivers electricity from Bhutan to Delhi.