Tata Power has secured the mandate to develop the 1,125 MW Dorjilung Hydropower Project in Bhutan, marking a major milestone in India-Bhutan energy cooperation. The project is poised to strengthen regional power security, expand clean energy capacity, and deepen cross-border infrastructure partnerships. As India pushes to enhance renewable energy generation and Bhutan continues leveraging hydropower as a driver of economic growth, the Dorjilung initiative represents a strategic win for both nations. Tata Power’s involvement also reinforces its status as one of India’s leading renewable energy developers, with a growing international footprint.
A Strategic Win for Tata Power
Tata Power’s appointment as the developer of the Dorjilung project underscores its rising prominence in South Asia’s clean energy market. The company, already managing large renewable assets across India, will spearhead engineering, financing and construction for the Bhutan-based facility. Once commissioned, the 1,125 MW hydropower plant will significantly augment regional electricity availability and support India’s increasing demand for clean, stable baseload power.
The project also aligns with Tata Power’s long-term strategy to advance renewable energy assets, diversify geographically and strengthen its hydropower portfolio amid global decarbonization efforts.
Boosting India-Bhutan Energy Cooperation
Hydropower has long been the backbone of India-Bhutan bilateral relations. Bhutan exports a major portion of its surplus electricity to India, generating critical revenue for its economy while supporting India’s energy needs.
The Dorjilung project is expected to further deepen this collaboration, offering Bhutan a steady long-term income stream while ensuring India has access to reliable, renewable power from a close strategic partner. Infrastructure connectivity, investment flows and technological cooperation between the two countries are also likely to strengthen as development progresses.
A Major Step in Regional Clean Energy Expansion
At 1,125 MW, Dorjilung is set to become one of Bhutan’s largest hydropower projects, reinforcing the nation’s commitment to carbon-neutral growth. Hydropower forms the core of Bhutan’s energy identity, enabling it to meet domestic needs sustainably while exporting green electricity.
For India, the project supports its ambition to transition toward low-carbon power systems without compromising grid stability. Hydropower complements solar and wind generation, offering storage, peak-load stability and long-duration energy output — all vital for a resilient renewable grid.
Economic and Infrastructure Implications
The Dorjilung project is expected to draw significant investment, generate employment and support local infrastructure development in Bhutan. Construction activity will boost regional supply chains, create skilled and semi-skilled jobs and enhance connectivity around the project area.
For Tata Power, the project adds a major asset to its portfolio, strengthening revenue potential and enhancing its international presence. The company’s experience with large-scale renewable projects positions it well to deliver the development efficiently and sustainably.
A Forward-Looking Partnership
As South Asian nations push for cleaner energy transitions, projects like Dorjilung symbolize how cross-border partnerships can accelerate renewable development. The Tata Power-Bhutan collaboration is poised to set a benchmark for future regional energy ventures.
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