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India Power Corporation Limited has partnered with Bhutan’s Green Energy Power Private Limited to develop a 70 MW solar project in Paro, part of a larger 1.5 GW solar expansion planned over the next five years. The move comes as Bhutan’s power demand is set to more than double, driven by urban development, industrial growth, and digital infrastructure. The Tenchuka site offers favorable conditions for solar energy and easy power evacuation. This initiative marks Bhutan’s first independent power producer solar project and highlights growing Indian investments in Bhutan’s renewable sector.
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India Power Corporation Limited (IPCL) has entered a strategic partnership with Bhutan's Green Energy Power Private Limited to develop a 70 MW solar project in Paro district. This initiative forms part of IPCL's broader plan to establish 1.5 GW of solar capacity in Bhutan over the next five years, highlighting the company's expanding presence in the regional renewable energy sector.
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Bhutan';s electricity demand is expected to more than double in the coming two years, driven by projects such as the Gelephu Mindful City, growth in energy-intensive industries like ferrosilicon production, and rising requirements from digital infrastructure and crypto-mining operations. While hydropower remains the main source of energy, Bhutan aims to reach 25,000 MW of total installed capacity by 2034, with 5,000 MW contributed by solar power.
The Tenchuka site in Paro was chosen after a preliminary technical assessment. The project will occupy roughly 200 acres of south-facing land with high solar irradiation. Its proximity, about 3.5 km from the Jamjee 220/33 kV substation, is expected to facilitate efficient power evacuation.
Somesh Dasgupta, whole-time director of IPCL, described the Tenchuka project as more than just an addition to capacity, emphasizing its role in promoting cross-border energy collaboration and IPCL's goal of becoming a 1.5 GW solar player by 2030. Tandi Dorji, founder of Green Energy Power Private Limited, noted that this will be Bhutan's first independent power producer (IPP) solar project.
Indian power companies have increasingly turned their focus toward Bhutan. Tata Power is jointly developing around 5,000 MW of clean energy projects with Druk Green Power Corporation (DGPC), while Adani Power has signed a memorandum with DGPC to explore hydropower capacity up to 5,000 MW. Reliance Power, in partnership with Druk Holding and Investments, is working on a 500 MW solar project and is planning further hydropower expansion.
Established in 1919, IPCL is an integrated power utility with activities spanning power distribution, smart metering, renewable energy, and thermal generation. More than 70% of its current portfolio now comprises green energy projects, reflecting the company's long-term focus on sustainable power development.
Source PTI
FAQ
Q1. What is the new solar project that India Power Corporation Limited is developing in Bhutan?
India Power Corporation Limited (IPCL) is partnering with Bhutan's Green Energy Power Private Limited to develop a 70 MW solar project at Tenchuka in Paro district. This project is part of IPCL's larger plan to develop 1.5 GW of solar capacity in Bhutan over the next five years, strengthening India's footprint in the regional renewable energy sector.
Q2. Why was the Tenchuka site in Paro selected for the solar project?
The Tenchuka site was chosen due to its favorable technical conditions, including high solar irradiation and south-facing land. The project will occupy around 200 acres, and its proximity about 3.5 km from the Jamjee 220/33 kV substation will allow efficient power evacuation.
Q3. What is driving Bhutan;'s growing demand for electricity?
Bhutan's electricity demand is expected to more than double in the next two years due to urban development projects like Gelephu Mindful City, growth in energy-intensive industries such as ferrosilicon production, and rising requirements from digital infrastructure and crypto-mining operations. While hydropower remains the dominant source, Bhutan aims to reach 25,000 MW of total installed capacity by 2034, with 5,000 MW from solar energy.
Q4. How significant is this project for Bhutan's energy sector?
The Tenchuka solar project is Bhutan's first independent power producer (IPP) solar initiative, marking a milestone in the country's diversification from hydropower toward solar energy. It also reflects the growing collaboration between India and Bhutan in the renewable energy sector.
Q5. How does this project fit into India Power's broader renewable energy strategy?
The project supports IPCL's goal of becoming a 1.5 GW solar player by 2030. Currently, over 70% of IPCL's portfolio comprises green energy projects, including renewable power generation, smart metering, and sustainable initiatives, demonstrating the company's long-term commitment to clean energy development.
Q6. What other Indian companies are investing in Bhutan's energy sector?
Several Indian companies are actively investing in Bhutan's power sector. Tata Power is developing around 5,000 MW of clean energy projects with Druk Green Power Corporation (DGPC), Adani Power is exploring up to 5,000 MW of hydropower with DGPC, and Reliance Power is working on a 500 MW solar project with Druk Holding and Investments while planning further hydropower expansion.
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