On October 2, Reliance Group announced a significant strategic partnership with the government of Bhutan aimed at advancing the development of solar and hydropower projects. This collaboration marks a milestone as it represents the largest foreign direct investment by a private entity in Bhutan’s renewable energy sector.
Under this partnership with Druk Holding and Investments Ltd, which serves as the commercial and investment arm of the Bhutanese government, the Anil Ambani-led Reliance Group plans to jointly construct 500 megawatts (MW) of solar energy capacity along with 770 MW of hydropower projects within the country.
The initiative to establish a 500-MW solar power plant is set to take place in Bhutan’s Gelephu Mindfulness City. This project will unfold over the next two years, progressing in two phases of 250 MW each. Upon completion, this solar installation will not only be the largest in Bhutan but will also surpass all existing solar power setups in the country.
The plant aims to generate clean, renewable energy, thereby playing a crucial role in combating climate change and its adverse effects. In addition to the solar energy project, Reliance Power Ltd, in partnership with Druk Holding, will also develop the Chamkharchhu-1 Hydro Project, which has a capacity of 770 MW.
This project has been designated as a run-of-the-river initiative under a concession model that aligns with the Bhutanese government’s policy framework. This classification emphasizes the project’s commitment to sustainable practices while contributing to the nation’s energy needs.
The partnership between Reliance Group and Druk Holding is set to prioritize green energy production, particularly focusing on initiatives in solar and hydropower. Furthermore, the collaboration seeks to investigate innovative green technologies that can enhance energy efficiency and sustainability.
Reliance Group plans to work alongside government-owned enterprises in Bhutan to execute various infrastructure projects that align with the country’s ambitious net-zero objectives. As part of this new venture, Reliance Group has also announced the establishment of a flagship company named Reliance Enterprises.
This newly formed entity aims to bolster investment in Bhutan’s renewable and green energy sector. Reliance Enterprises will be jointly promoted by Reliance Infrastructure Ltd and Reliance Power, and it will concentrate on developing sustainable energy solutions. Additionally, the company will implement smart distribution and metering systems across Bhutan to enhance the overall efficiency of the energy sector.
This strategic partnership is poised to not only elevate Bhutan’s renewable energy capacity but also foster economic growth and development in the region. By leveraging advanced technologies and sustainable practices, Reliance Group and the Bhutanese government are set to work hand in hand to achieve a greener future for the Himalayan nation.
The collaboration exemplifies a commitment to harnessing renewable resources for the benefit of the environment and local communities alike, setting a precedent for future investment in the renewable energy sector in Bhutan.
Reliance Group, founded by Dhirubhai Ambani in 1960, is one of India’s largest conglomerates, operating across diverse sectors, including petrochemicals, refining, telecommunications, retail, and renewable energy. With a strong commitment to innovation and sustainability, Reliance aims to enhance the quality of life for millions while driving economic growth. The group is led by Mukesh Ambani and has a global presence.
