Reliance Power Shares Rise As Anil Ambani-Led Firm Secures Rs 2,000 Cr Deal to Build Bhutan’s Largest Solar Plant

Anil Ambani-led Reliance Power on Monday announced that it has signed a commercial term sheet for a long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL), a company owned by Bhutan’s Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan.

Following the announcement, shares of Reliance Power surged over 2%. As of 10:37 am, the stock was trading at Rs 46.12, up 1.04 or 2.31% on the BSE.

Rs 2,000 Cr Solar Plant to Be Developed Under 50:50 JV
As part of the agreement, Reliance Power and DHI will jointly develop Bhutan’s largest solar power project with an installed capacity of 500 megawatts. The solar project will be executed under a 50:50 joint venture model, with a capital investment of up to Rs 2,000 crore. The development will follow the Build-Own-Operate (BOO) model, making it the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector so far.

“This milestone transaction highlights Reliance Power’s continued focus on capital deployment into high-impact, long-duration clean energy assets, while strengthening its strategic positioning in the regional power infrastructure space,” the company said in its exchange filing.
 

Tendering and Financing Process Underway
Reliance Power has already initiated the Engineering, Procurement, and Construction (EPC) tendering process in line with international competitive bidding norms. This is aimed at ensuring optimal technical execution and cost efficiency.

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Boost to Indo-Bhutan Energy Cooperation
The solar investment underscores Reliance Group’s commitment to expanding its renewable energy portfolio while deepening economic cooperation between India and Bhutan. The project aligns with Bhutan’s sustainability framework and the regional energy transition agenda.

Reliance Power said its clean energy pipeline currently includes 2.5 GWp of solar and over 2.5 GWhr of Battery Energy Storage Systems (BESS), making it India’s largest integrated Solar + BESS player.

Phased Implementation Over 24 Months
The 500 MW solar project is expected to be rolled out in phased tranches over the next 24 months. Once operational, it will surpass all existing solar installations in Bhutan and significantly diversify the country’s renewable energy mix, which is currently dominated by hydropower.

Partnership Also Includes Chamkharchhu-I Hydropower Project
This development follows the October 2024 agreement between Reliance Enterprises (a joint initiative of Reliance Power and Reliance Infrastructure) and DHI to develop both solar and hydro projects in Bhutan. The partnership also includes long-term development and operation of the 770 MW Chamkharchhu-I hydroelectric project, a run-of-the-river asset structured under a concession model.