Bhutan and the World Bank have signed a financing agreement worth USD 515 million for the 1125 MW Tata Power Dorjilung Hydro electric Power Project, one of the country’s largest clean energy developments under the public-private partnership (PPP) model.
The project is being jointly developed by Tata Power and Bhutan’s Druk Green Power Corporation Limited (DGPC) through Dorjilung Hydro Power Limited. The initiative marks a major step in strengthening regional clean energy cooperation between Bhutan and India while supporting long-term energy security goals.
Bhutan’s Dorjilung Hydroelectric Plant (DHP) Hydropower project which is currently under construction is expected to create approx. 4.5 TWh of electricity every year. This facility can provide almost One-third of Bhutan’s total electricity demand if the estimates prove to be correct resulting in helping Bhutan to expand its renewable generation capacity.
The project is also anticipated to contribute towards addressing seasonal energy shortages in Bhutan, while creating space for new electricity export opportunities. About 80% of the power generated will be exported to India, further solidifying bilateral energy sector interdependencies.
A collaborative finance arrangement with The World Bank will facilitate development of infrastructure, implementation of projects, and the sustainability of initiatives related to Hydropower. The Hydropower project supports other regional initiatives aimed at accelerating the deployment of renewable energy sources and strengthening low carbon electric power systems in South Asia.
Hydropower continues to play a central role in Bhutan’s economy and renewable energy strategy. Large-scale projects such as Dorjilung are increasingly being viewed as critical for balancing energy demand, supporting industrial growth, and enabling regional energy trade.
The Dorjilung project also reflects the growing importance of strategic partnerships between governments, global financial institutions, and private sector energy companies in advancing large-scale renewable energy infrastructure across the region.
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