The signing of the $515 million financing agreement between the Government of Bhutan and the World Bank for the 1,125 MW Dorjilung Hydroelectric Power Project advances clean energy generation in the region and is set to boost renewable energy trade with roughly 80% of its output destined for India.

The $1.7 billion project is Bhutan's largest hydropower development and is structured as a public-private partnership through Dorjilung Hydro Power Limited (DHPL), a joint venture between Druk Green Power Corporation (60%) and Tata Power of India (40%). Tata Power will manage power imports and distribution on the Indian side.

Located on the Kurichhu River, the project and is designed to address Bhutan's winter power shortages, while enabling surplus exports to India during summer and monsoon months.

Clean Energy and Regional Security

The project will displace 3.3 million tonnes of CO₂ annually, reinforcing Bhutan's carbon-negative status. World Bank Vice President Johannes Zutt called it a new standard for sustainable infrastructure, noting it will "reduce energy import costs and increase export revenues while lowering carbon emissions."

Bhutan PM Dasho Tshering Tobgay described it as "a cornerstone of Bhutan's 13th Five-Year Plan," underscoring its role in the country's long-term economic and climate strategy. Tata Power CEO Praveer Sinha added that the project will specifically help India meet rising peak demand, especially in summer.

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India to receive 80% of power from Bhutan’s Dorjilung project backed by $515 million World Bank funding