Anil Ambani’s Reliance Group Enters Bhutan with 1,270 MW Renewable Energy Projects

Anil Ambani  Reliance Group is expanding into Bhutan with plans to develop 1,270 megawatts of solar and hydroelectric power projects. The group has partnered with Druk Holding and Investments Ltd (DHI), the commercial arm of Bhutan’s government, to promote investments in renewable energy, as announced to the stock exchanges on October 02, 2024.

For this initiative, Reliance has created a new company called Reliance Enterprises, which will be co-promoted by Reliance Infrastructure Ltd and Reliance Power Ltd. The new venture will focus on green energy projects, including solar and hydroelectric power, while also exploring emerging green technologies.

As part of the deal, Reliance Enterprises will construct a 500 MW solar plant in Gelephu Mindfulness City in 2 phases, with each phase delivering 250 MW. The project is expected to be finished in the next 2 years.

The partnership will also include the development of the 770 MW Chamkharchhu-1 hydroelectric project, which will follow Bhutan’s concession model for run-of-the-river hydro plants.

Reliance Group stated that they will work together with government-owned companies in Bhutan to carry out infrastructure projects that align with Bhutan’s net-zero goals.

The partnership agreement was signed by Harmanjit Singh Nagi, President of Corporate Development at Reliance Power Ltd, and Ujjwal Deep Dahal, CEO of Druk Holding and Investments, with Anil Ambani attending the event.

Reliance Enterprises will also help set up smart distribution and metering systems throughout Bhutan to provide sustainable energy solutions that meet the country’s needs.

“This project shows Reliance Group’s strong commitment to Bhutan’s renewable energy sector,” the company said, highlighting its goal to support both economic growth and well-being by taking inspiration from Bhutan’s Gross National Happiness Index.

The 500 MW solar plant, set to be Bhutan’s largest, will produce clean energy to combat climate change. Land has already been allocated, and experts from Reliance, Druk Holding, and other consultants are conducting site studies.

This initiative will be the biggest investment in Bhutan’s renewable energy sector and the largest foreign direct investment from an Indian company. With Bhutan’s current power capacity at 2,452 MW, the Chamkharchhu-1 hydro project will be a key achievement as a joint effort between Bhutan and an Indian private company.

Ujjwal Deep Dahal, CEO of Druk Holding, expressed excitement about the partnership, saying it combines the strengths of both organisations in green energy. He emphasised that this collaboration will deliver top-notch clean energy projects to benefit both India and Bhutan.

Reliance Power, with an installed capacity of 5,340 MW, including the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh, is expanding its green energy operations. Reliance Infrastructure continues its work in energy distribution in Delhi and major projects like the Mumbai Metro.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.