DHyE Signs Contract for Electro-Mechanical Works at 500 kW Lunana Hydropower Project

Druk Hydro Energy Limited (DHyE), a subsidiary of Druk Green Power Corporation Limited (DGPC), has signed a contract for the electro-mechanical works package for the 500 kW Lunana Mini Hydropower Project in Bhutan.

The contract covers the design, manufacture, supply, installation, erection, testing and commissioning of electro-mechanical equipment for the project. Valued at Nu. 210 million, the contract has been awarded to Bhutan Engineering Power Company Private Limited (BEPCPL) in association with GH Energy Private Limited, India.

The Lunana Mini Hydropower Project is being financed by the Government of India and is expected to play an important role in strengthening electricity access and supporting development in the remote Lunana region.

The signing of the electro-mechanical contract marks a significant milestone in the implementation of the project. Civil and hydro-mechanical works have already commenced, placing the project in an active construction phase.

With the project scheduled for commissioning by the end of 2027, stakeholders face a tight implementation timeline. The timely execution of the electro-mechanical package will therefore be critical to ensuring that the project progresses according to schedule.

The contract signing ceremony was attended by senior management of DGPC along with representatives from BEPCPL. The agreement brings together Bhutanese and Indian engineering expertise for the delivery of key equipment and systems required for the mini hydropower facility.

The Lunana project reflects continued cooperation between Bhutan and India in the hydropower sector and highlights efforts to expand renewable energy infrastructure while supporting development in Bhutan’s remote and strategically important regions.

With major civil, hydro-mechanical and electro-mechanical components now moving forward, the project is expected to advance toward its targeted completion and commissioning at the end of 2027.