The Bhutanese Leading the way.
According to the Minister of Energy and Natural Resources Lyonpo Gem Tshering, the Adani Group has indicated a preference for a run-of-the-river (RoR) model over a reservoir-type scheme for the development of the Wangchhu Hydropower Project.
The RoR scheme option at 570 MW is designed to include peaking capabilities during the lean season, allowing for a minimum four-hour power generation window in a 90% dependable year. It is projected to deliver 1,968.55 GWh of energy annually, with a firm power capacity (winter generation) of 94.96 MW.
In contrast, the alternative 900 MW reservoir-based scheme, though capable of producing 1,919 GWh annually and offering a higher firm power capacity of 126 MW, appears to be less favored by Adani following preliminary assessments.
The group is now working with DGPC to finalize the most viable option, with both sides currently revising technical and financial parameters before concluding the shareholder agreement.
Adani and DGPC signed the initial MoU for the Wangchhu project on June 16, 2024. By December, the two parties agreed to a joint structure with DGPC holding a 51% majority stake and Adani taking 49%. Construction is targeted to begin in April 2027 and conclude by April 2034.
This development comes on the heels of a broader MoU signed on May 8, 2025, under which DGPC and Adani agreed to collaborate on 5,000 MW of renewable energy projects in Bhutan, with Wangchhu being a key component.
The Wangchhu Hydropower Project, located in Chhukha Dzongkhag, was initially part of Bhutan’s 10,000 MW by 2020 initiative, which did not materialize under its original framework.
Similarly, the 180 MW Bunakha Hydropower Project, another component of the original 10,000 MW plan, is being revived with the support of the Asian Development Bank (ADB). While the Detailed Project Report (DPR) for Bunakha was completed in 2013, it required updates to meet current environmental, social, and technical standards.
To support this, ADB approved a US$ 5 million concessional Project Readiness Financing (PRF) loan for updating the DPR and Environmental & Social Impact Assessment (ESIA). Consultancy work has been awarded to a joint venture of Fichtner GmbH & Co. KG and Jade Consult Pvt. Ltd., with updates expected by December 2025. Civil works are slated to begin in August 2026, following the completion of pre-construction activities, which is expected to begin towards the end of this year.
The above information was given in response to a question by the Bongo-Chapcha MP to the MoENR Minister in the National Assembly.
