“This is in keeping with Bhutan’s vision for its energy sector which is to take its overall generation capacity to 25,000 MW by 2040 for its energy security and regional energy integration,” according to a stock exchange filing.
Through the collaboration, at least 5,000 MW of renewable energy projects; including 4,500 MW of hydropower comprising the 1,125 MW Dorjilung HEP; 740 MW Gongri Reservoir; 1,800 MW Jeri Pumped Storage; and 364 MW Chamkharchhu IV will be developed in phases together. Another 500 MW of Solar projects will be developed by Tata Power Renewable Energy Ltd (TPREL), a subsidiary of Tata Power.
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As a precursor to this collaboration, Tata Power recently acquired a 40% stake for ₹8.30 billion in the 600 MW Khorlochhu Hydroelectric Project where an investment of over ₹69 billion will be made to develop the project.
Tata Power has had a long-standing relationship with DGPC since 2008 when the two companies joined forces to successfully develop the 126 MW Dagachhu Hydropower Plant as the first Public Private Partnership in Bhutan’s hydropower sector. Tata Power also has a transmission project of a 1,200 km long Tala transmission line that evacuates clean power from Bhutan to India.
Bhutan plans to achieve this target through diversification in its energy portfolio beyond traditional hydropower, which would include solar and geothermal energy. This will extend to diversifying project structuring and financing through such strategic partnerships.
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With the support of the Royal Government of Bhutan and the Government of India, this marks the largest partnership between two of the leading power companies of the two nations in Asia’s clean energy sector. Both companies have a stellar track record in the energy sector and a long-standing relationship having worked together for over 15 years.
Dr Praveer Sinha, CEO and Managing Director of Tata Power said, “Tata Power’s partnership with Druk Green Power Corporation reinforces our credentials as the most preferred clean energy partner in the region.
Together, we are building 5000 MW of clean energy capacity that will help harness Bhutan’s hydropower potential and support both countries’ growing energy demands with reliable and round-the-clock clean energy supply. Together we are shaping a new energy era.”
Shares of Tata Power Company Ltd ended at ₹408.10, up by ₹3.35, or 0.83% on the BSE.
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