Tata Power and DGPC Sign Deal for 600 MW Khorlochhu Hydropower Project

08 Aug 2024 CW Team

Praveer Sinha, the CEO and Managing Director of Tata Power, remarked that the alliance between Tata Power and Druk Green Power Corporation is a milestone. He noted that the Khorlochhu Hydropower Project will enhance energy security in the region and represents a significant move towards creating a sustainable energy landscape, highlighting Tata Power?s dedication to a greener future.

The project is anticipated to address Bhutan?s increasing winter electricity demands and also to export power to India during the summer, thus aiding the growing power needs of Indian utilities. Dasho Chhewang Rinzin, the Managing Director of DGPC, mentioned that this strategic collaboration with Tata Power is a major step towards Bhutan?s energy security and economic growth. He expressed that the partnership is crucial for Bhutan's goal of becoming a High-Income GNH Economy by 2034 and will open new investment avenues to utilise Bhutan?s extensive hydropower and solar potential. He also emphasized that it would enhance access to the evolving Indian energy market for surplus generation during summer and create opportunities for future regional market expansion.

Khorlochhu Hydro Power will enter into long-term Power Purchase Agreements (PPA) with Tata Power Trading Corporation to export surplus summer power to the Indian market and with Bhutan Power Corporation for the domestic sale of power during winter months. Additionally, Tata Power?s commitment to sustainability is further demonstrated by its joint venture with Power Grid Corporation of India, which manages a 1,200 km long transmission line that delivers electricity from Bhutan to Delhi.

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Tata Power, one of India's leading integrated power companies, has entered into a strategic partnership with Druk Green Power Corporation (DGPC) of Bhutan to develop the 600 MW Khorlochhu Hydropower Project. The project, situated in the Trashiyangtse District of Eastern Bhutan on the Kholongchhu river, will see Tata Power making a 40 per cent equity investment, with an estimated cost of approximately Rs 69 billion. With all necessary approvals secured, construction is set to begin immediately, with a completion timeline of five years. Praveer Sinha, the CEO and Managing Director of Tata Power, remarked that the alliance between Tata Power and Druk Green Power Corporation is a milestone. He noted that the Khorlochhu Hydropower Project will enhance energy security in the region and represents a significant move towards creating a sustainable energy landscape, highlighting Tata Power?s dedication to a greener future. The project is anticipated to address Bhutan?s increasing winter electricity demands and also to export power to India during the summer, thus aiding the growing power needs of Indian utilities. Dasho Chhewang Rinzin, the Managing Director of DGPC, mentioned that this strategic collaboration with Tata Power is a major step towards Bhutan?s energy security and economic growth. He expressed that the partnership is crucial for Bhutan's goal of becoming a High-Income GNH Economy by 2034 and will open new investment avenues to utilise Bhutan?s extensive hydropower and solar potential. He also emphasized that it would enhance access to the evolving Indian energy market for surplus generation during summer and create opportunities for future regional market expansion. Khorlochhu Hydro Power will enter into long-term Power Purchase Agreements (PPA) with Tata Power Trading Corporation to export surplus summer power to the Indian market and with Bhutan Power Corporation for the domestic sale of power during winter months. Additionally, Tata Power?s commitment to sustainability is further demonstrated by its joint venture with Power Grid Corporation of India, which manages a 1,200 km long transmission line that delivers electricity from Bhutan to Delhi.

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