Reliance Group and Bhutan’s Druk Holding Join Forces for Major Renewable Energy Projects

Anil Ambani-headed Reliance Group joined forces with Druk Holding and Investments Ltd. (DHI), the trading and investment arm of the Royal Government of Bhutan, to develop large-scale renewable energy projects. This partnership will strengthen the endeavors of Bhutan in the green energy space through major solar and hydropower initiatives. The joint venture accelerates the development of renewable energy projects and is a landmark decision for both the countries involved. Under this MoU, Reliance Group said that a new entity called Reliance Enterprises would be formed, and it would be solely utilized for advertising investments in Bhutan's renewable and green energy sector. Reliance Enterprises is co-promoted by Reliance Infrastructure Ltd. and Reliance Power Ltd. The newly set up company would study how Bhutan can improve its renewable energy capacity, bring itself closer to a net zero position, and look at smart distribution and metering systems. Reliance Enterprises, in association with DHI, has submitted a proposal for the development of a 500 MW solar power plant at Gelephu Mindfulness City, Bhutan. The mega project would be implemented in two phases of 250 MW each over two years. Once completed, this would be the largest installation of solar power plants in Bhutan. The project would help in the generation of clean and renewable energy, significantly contributing towards Bhutan's renewable energy targets and combating climate change. This is the largest FDI so far for an Indian company in Bhutan's renewable energy sector. Besides solar power, Reliance Group and DHI will develop the 770 MW Chamkharchhu-1 hydro project. Chamkharchhu-1 is a run-of-the-river hydropower project, which is Bhutan's concession model. At present, Bhutan's installed generation capacity stands at 2,452 MW; the Chamkharchhu-1 project is well-placed to significantly increase the country's hydropower capacity. The project is also an important collaboration between the private and public sectors of India and Bhutan. The Reliance Group and Druk Holding agreement show that they are working to create a strong portfolio of renewable energy for the Bhutanese people. These individuals believe that the economic growth of the country will be supported by their efforts toward developing sustainable development of the kingdom, which aligns well with Bhutan's Gross National Happiness Index. Conclusion The Bhutan Reliance Group-Druk Holding joint venture is a landmark in Bhutan's renewable energy sector in some of the country's biggest solar and hydropower projects. Both parties contribute to a greener, cleaner future while building energy security in Bhutan. And so, an investment for the firm is a long-term commitment to sustainability and playing a role that drives forward Bhutan's green energy goals. Source: Reliance Group