Reliance Power inks deal for Bhutan’s 500-MW solar project

The project will be under a 50:50 venture.

Reliance Power Limited has entered into an agreement to develop Bhutan's largest 500 megawatt solar power project.

In a statement, Reliance Power said the project will be under a 50:50 venture with Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan. This will have a capital outlay of up to INR 2,000 crores under Build-Own-Operate (BOO) model.

As part of this project, Reliance Power also signed a commercial term sheet for a long-term power purchase agreement with DHI-owned Green Digital Private Limited.

The engineering, procurement, and construction tendering process has commenced. The company has also initiated engagement with leading financial institutions for project financing focused on optimising capital structure and enhancing overall financing efficiency.

The project will be implemented in phased tranches over the next 24 months.

Reliance Power’s total clean energy pipeline is 2.5 gigawatt-peak solar and over 2.5 gigawat-hour battery energy storage system.