JSW Energy Limited announced the signing of a shareholders’ agreement for the joint development of the 920 MW Punatsangchhu-III Hydroelectric Project in Wangdue Phodrang District, Bhutan, with Druk Green Power Corporation Limited (“DGPC”), a fully owned subsidiary of Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan.
The Bhutan’s prime minister was present when the agreement was signed. According to the terms of the agreement, the project will be developed through a joint venture firm in which JSW Neo Energy, a wholly owned subsidiary of the company, will hold 49% of the equity share capital and DGPC will hold 51%. This is the company’s first attempt to generate electricity outside of India. DGPC and the company are working together to prepare the Detailed Project Report.
With a power system based solely on clean hydropower that is being expanded to include other renewable energy sources like solar, Bhutan is one of the few carbon-negative nations in the world. There is significant unrealized hydroelectric potential in the nation’s Himalayan river systems. Large hydro assets have long been developed and operated by Bhutan, primarily in collaboration with India; this partnership is a prime example of the two nations’ good bilateral cooperation. As Bhutan’s generation utility, DGPC contributes decades of experience in design engineering, development, and operation of the nation’s hydroelectric assets to the collaboration.
Commenting on the agreement, Sharad Mahendra, Joint Managing Director and CEO, JSW Energy, said, “We are privileged to partner with Druk Green Power Corporation on Punatsangchhu-III, our first power generation venture outside India — bringing together two organisations with deep experience in developing and operating large hydroelectric assets in Himalayan terrain. Bhutan is one of the world’s few carbon-negative nations, and we are proud to contribute to the further development of its clean energy resources. At 920 MW, this project meaningfully strengthens our hydro portfolio and advances our green transition, adding clean, dispatchable capacity that complements wind and solar generation and supports stable, predictable cash flows. The partnership also reflects the enduring energy cooperation between India and Bhutan.”
The company’s total locked-in generation capacity is 32.4 GW, which includes a pipeline of 4.0 GW, 14.9 GW of operating thermal, hydro, and renewable energy, and 13.5 GW under construction. The company is the biggest private hydropower generator in India, with an operating portfolio of 1,781 MW. Additionally, the company has 29.6 GWh of locked-in energy storage capacity, which is made up of 3.2 GWh of battery energy storage systems and 26.4 GWh of pumped hydro storage. By 2030, JSW Energy hopes to have 30 GW of generation capacity, 40 GWh of energy storage capacity, and carbon neutrality by 2050.
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