Bhutan and the World Bank on Tuesday signed financing agreements worth USD 515 million for Dorjilung Hydropower Project Ltd (DHPL) being developed by Tata Power and Druk Green Power Corporation.
Once operational, the 1125 MW DHPL- a special purpose vehicle 60 per cent owned by Bhutan's Druk Green Power Corporation (DGPC) and 40 per cent by Tata Power- will be Bhutan's largest hydropower project to be developed under a public-private partnership (PPP) model.
With nearly 80 per cent of its 4,500 GWh annual generation supplied to India, it will help meet rising peak demand especially in summer while enabling Bhutan to expand clean energy exports for shared economic benefit.
In a statement, the World Bank said the project will boost clean energy cooperation between India and Bhutan and strengthens regional energy security.
Praveer Sinha, CEO & MD Tata Power said, the project will strengthen regional energy security and deepen India-Bhutan clean energy cooperation.
The project will account for about one-third of Bhutan's total energy generation, drive economic growth through access to affordable electricity and clean energy exports, and create jobs, the statement said.
Located on the Kurichhu River in eastern Bhutan, it will generate over 4,500 GWh of clean electricity annually, closing Bhutan's seasonal energy gap during the winter months and providing surplus power for export to India in the summer and rainy season.
Johannes Zutt, World Bank Vice President for the South Asia Region said besides providing affordable and reliable power to support growth and job creation, the project will reduce energy import costs and increase energy export revenues for Bhutan, while also lowering carbon emissions and diversifying energy sources across the South Asia region.