Reliance Power, a major Indian energy conglomerate, has announced a significant renewable energy initiative in Bhutan, according to reports from Indian media. The company has entered into a strategic partnership with Green Digital, a subsidiary of Druk Holding and Investments (DHI)—the investment arm of the Royal Government of Bhutan. Together, they will develop Bhutan’s largest solar power facility.
This collaboration marks a key milestone in regional energy cooperation, promoting cross-border clean energy development and strengthening power infrastructure in South Asia. It also reflects a growing trend of international partnerships focused on accelerating the transition to renewable energy.
The project will be executed as a 50:50 joint venture, with equal ownership shared between Reliance Power and DHI. The proposed solar plant will have a capacity of 500 megawatts (MW), making it the largest private-sector foreign investment in Bhutan’s solar energy sector to date. The total estimated cost of the project is approximately INR 20 billion (about USD 234 million).
The plant will be developed under a Build-Own-Operate (BOO) model, in which Reliance Power and DHI will construct, own, and manage the facility to generate and distribute electricity. Reliance Power has already begun the process of selecting vendors and contractors for the supply of equipment and services, and is currently in discussions with banks and financial institutions to secure financing, ensuring the project’s long-term viability.
This project is a core component of Reliance Power’s broader renewable energy strategy, which includes over 2.5 gigawatts (GW) of solar power development and more than 2.5 gigawatt-hours (GWh) of battery energy storage systems (BESS). These investments position Reliance as one of India’s leading players in integrated solar and storage solutions.
The emphasis on battery storage is particularly significant, as it enables the capture and use of surplus solar energy during non-sunny hours, enhancing the reliability and efficiency of renewable energy systems.
Scheduled for completion within 24 months, the solar power project is expected to be operational by May 2027. It will play a crucial role in expanding Bhutan’s solar energy capacity, diversifying its renewable energy mix, and reducing dependence on other forms of power generation.
The partnership between Reliance Power and DHI was formalized in October 2024 through the establishment of a joint venture called Reliance Enterprises. In addition to the solar project, the joint venture will also undertake the development of hydropower projects in Bhutan. Among these is the 770 MW Chamkhar Chhu-I hydroelectric project, which will further strengthen Bhutan’s clean energy leadership in the region.
Simultaneously, Reliance continues to expand its renewable energy footprint within India. In January 2025, its subsidiary Reliance NU Suntech announced a USD 1.16 billion investment in a mega solar power project in Andhra Pradesh. The facility, set to become the largest solar plant in Asia, will have a generation capacity of 930 MW and incorporate a 465 MW/1,860 MWh battery storage system to ensure reliable energy supply and support India’s climate action targets.
Sherab Dorji from Thimphu
