India Power Corporation Enters Bhutan’s Solar Market with 70 MWp Project in Strategic Partnership

Listed power utility India Power Corporation Limited (IPCL) has entered into a strategic partnership with Bhutan-based Green Energy Power Private Limited to develop a 70 MWp solar power project in Bhutan’s Paro district, marking its entry into the Himalayan nation’s renewable energy market.

The project forms part of IPCL’s broader plan to add 1.5 GW of solar capacity in Bhutan over the next five years, as the company expands its international renewable energy footprint. The move comes amid a sharp rise in Bhutan’s electricity demand, driven by infrastructure development, energy-intensive industries, and growing digital and crypto-mining activities.

Bhutan’s power demand is projected to more than double within the next two years, supported by large-scale initiatives such as the Gelephu Mindful City project and the expansion of industries including ferrosilicon manufacturing. While hydropower currently dominates Bhutan’s energy mix, the Royal Government of Bhutan has set an ambitious target of achieving 25,000 MW of installed capacity by 2034, including 5,000 MW from solar power.

According to IPCL, the Tenchuka site in Paro district was selected following detailed technical assessments. The project will be developed on approximately 200 acres of south-facing land with high solar irradiation and is located about 3.5 km from the Jamjee 220/33 kV substation, ensuring efficient power evacuation.

Commenting on the development, Somesh Dasgupta, Whole-Time Director, India Power Corporation Limited, said the project reflects the company’s commitment to sustainable energy and cross-border cooperation. “Our 106 years of experience across the power value chain enables us to bring technical expertise to Bhutan’s emerging solar market. The Tenchuka project represents both capacity expansion and our strategic objective of becoming a 1.5 GW solar player by 2030,” he said.

Tandi Dorji, Founder of Green Energy Power Private Limited and former Bhutanese Minister of External Affairs, said the Tenchuka Solar Project would be Bhutan’s first independent power producer (IPP) solar initiative. “This project symbolises private sector participation in strengthening Bhutan’s energy security and reflects growing collaboration between Bhutanese and Indian companies. It is expected to serve as a benchmark for future IPP developments in close partnership with the Royal Government of Bhutan,” Dorji said.

The development places IPCL among a growing group of Indian companies expanding their renewable energy presence in Bhutan. Tata Power, in collaboration with Druk Green Power Corporation (DGPC), is jointly developing around 5,000 MW of clean energy projects, while Adani Power has signed a memorandum of understanding with DGPC to explore hydropower projects of up to 5,000 MW. Reliance Power, in partnership with Druk Holding and Investments (DHI), is developing a 500 MW solar project and is also planning additional hydropower capacity.