Reliance Power Limited has signed a commercial term sheet for a long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL), which is owned by Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan.

Key details of the announcement:

• Reliance Power and DHI will jointly develop Bhutan’s largest solar power project with an installed capacity of 500 MW through a 50:50 joint venture.
• The project has a capital outlay of up to ₹2,000 crore under a Build-Own-Operate (BOO) model.
• This represents the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date.
• Reliance Power has commenced the Engineering, Procurement, and Construction (EPC) tendering process for the project.
• The company has also initiated engagement with financial institutions to structure project finance solutions.
• The project is part of a broader strategic partnership initiated in October 2024 between Reliance Enterprises (jointly promoted by Reliance Power and Reliance Infrastructure) and DHI to develop solar and hydropower projects in Bhutan. This partnership also includes the execution and long-term operation of the 770 MW Chamkharchhu-I hydroelectric project.
• The 500 MW solar project will be implemented in phased tranches over the next 24 months.