𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐑𝐞𝐧𝐞𝐰𝐚𝐛𝐥𝐞 𝐄𝐧𝐞𝐫𝐠𝐲 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐌𝐚𝐫𝐤𝐬 𝐍𝐞𝐱𝐭 𝐒𝐭𝐞𝐩 𝐢𝐧 𝐆𝐫𝐞𝐞𝐧 𝐕𝐢𝐬𝐢𝐨𝐧

…𝒄𝒐𝒍𝒍𝒂𝒃𝒐𝒓𝒂𝒕𝒊𝒐𝒏 𝒂𝒊𝒎𝒔 𝒕𝒐 𝒂𝒔𝒔𝒆𝒔𝒔 𝒂𝒏𝒅 𝒊𝒎𝒑𝒍𝒆𝒎𝒆𝒏𝒕 𝒑𝒓𝒐𝒋𝒆𝒄𝒕𝒔 𝒓𝒂𝒏𝒈𝒊𝒏𝒈 𝒇𝒓𝒐𝒎 100 𝒎𝒘 𝒕𝒐 250 𝒎𝒘 𝒘𝒉𝒊𝒍𝒆 𝒔𝒕𝒓𝒆𝒏𝒈𝒕𝒉𝒆𝒏𝒊𝒏𝒈 𝒑𝒓𝒊𝒗𝒂𝒕𝒆 𝒔𝒆𝒄𝒕𝒐𝒓 𝒊𝒏𝒗𝒐𝒍𝒗𝒆𝒎𝒆𝒏𝒕

By Tashi Tshewang

Druk Green Power Corporation Limited (DGPC) and Carbon Resources Private Limited (CRPL) have signed a Memorandum of Understanding (MoU) to jointly explore and develop large-scale renewable energy projects in Bhutan, marking another step toward strengthening the country’s clean energy ambitions. The partnership will focus on hydropower and solar projects ranging from 100 Megawatt (MW) to 250 MW, aligning with Bhutan’s long-term goal of expanding sustainable energy generation and attracting credible private sector investment.

The MoU signing ceremony was graced by Lyonpo Gem Tshering, Minister for Energy and Natural Resources, highlighting the Royal Government of Bhutan’s continued support for strategic partnerships that advance clean energy development and sustainable economic growth. The ceremony was attended by representatives from the Embassy of India in Bhutan, members of the DGPC Board of Directors, DGPC management, and officials from Carbon Resources Private Limited.

The partnership marks an important step in expanding Bhutan’s collaboration with credible private sector partners in the renewable energy sector. Under the MoU, DGPC will share relevant project information, past studies, and regulatory frameworks, enabling CRPL to undertake comprehensive technical, commercial, and financial assessments of potential hydropower and renewable energy sites. CRPL will subsequently conduct field visits, appraisals, and due diligence before identifying a selected project for joint development.

The projects will be developed through one or more Special Purpose Vehicles incorporated in Bhutan as joint ventures between DGPC and CRPL, with a proposed 70:30 debt-equity financing structure.

Speaking at the signing ceremony, Lyonpo Gem Tshering expressed satisfaction with the steady progress Bhutan has made in forging strategic renewable energy partnerships, noting that MoUs for more than 12,000 MW of generation capacity have already been signed. Lyonpo emphasized that the partnership between DGPC and CRPL represents another important step toward achieving Bhutan’s long-term goal of 25,000 MW of installed generation capacity by 2040.

He further noted that while signing MoUs is important, equal emphasis must be placed on timely implementation. Lyonpo cited projects such as the Khorlochhu Hydropower Project, the Jamjee Solar PV Project, and other upcoming initiatives expected to commence within the next one to two years.

Speaking on behalf of Carbon Resources Private Limited, Mr. Abhinav Jalan, Managing Director, CRPL, said, “It is an honor to partner with Druk Green Power Corporation in Bhutan, a country that stands as a global example of environmental stewardship and sustainable development. This MoU represents not just the beginning of a business collaboration, but the strengthening of a long-term vision for clean energy, regional cooperation, and shared prosperity.

We look forward to working closely with DGPC’s expert teams to undertake rigorous technical and financial assessments and to identify projects that are environmentally responsible, technically sound, and economically viable. We are deeply committed to carrying this partnership forward with sincerity, respect, and a long-term outlook.”
Dasho Chhewang Rinzin, Managing Director, DGPC, said, “This partnership forms part of DGPC’s broader initiative to engage credible private investors in support of Bhutan’s long-term renewable energy vision and to develop future-ready green infrastructure that strengthens national and regional clean power systems.”

The MoU reflects a shared commitment by DGPC and CRPL to pursue structured, transparent, and responsible project development, in line with the regulatory frameworks of Bhutan and India, while fostering long-term cooperation in the renewable energy sector.

Wang Tshewang Gakiling Gup said, “Once the project sites are selected, it is important that local authorities are actively involved in the implementation process. Local leaders understand the needs, priorities, and challenges of their communities, and by working closely with them, the government can ensure projects are implemented smoothly and in a way that truly benefits the people.”

He added that local authorities play a key role in coordination, monitoring progress, and community engagement, which helps ensure that residents fully benefit from development initiatives through improved services, opportunities, and inclusive participation.

He further noted, “Communities can expect multiple benefits from such projects, including job creation during both construction and operational phases, improved infrastructure, and increased business opportunities for local entrepreneurs. At the same time, concerns related to land use and environmental impacts can be addressed through proper consultation and careful planning.”

Chedrup Sonam Lhendup, Gup of Metsho Gewog, said, “With the signing of MoUs such as the one between DGPC and CRPL, it is important that community engagement is taken seriously from the beginning. Meetings are usually held and opportunities are provided for all community members to participate. During the survey stage, people become aware of the project locations, and consultations are conducted thereafter. While there are generally no major issues, some community members require repeated explanations to fully understand the process.”

He added, “Communities often expect employment opportunities and chances to supply local products when large energy projects are planned, and these expectations are managed during implementation. Jobs are categorized based on skill requirements. Some positions require trained and experienced labour, while others do not, and jobs that do not require training or experience are meant for local residents. Opportunities to sell local products depend on the project size and location. Larger projects usually establish camps near bigger schools and accommodate workers and their families, while smaller projects rely on nearby schools.”

He also noted that most hydropower and renewable energy projects are completed within two to three years, making it difficult to absorb all local products at once. When prices become too high, contractors may seek more affordable options. On infrastructure impacts, developers are responsible for restoration.

Referring to the 32 MW small hydropower project in Metsho Gewog, he said around 20 kilometers of road were constructed and later rehabilitated, with Nu 10–12 million allocated for restoration. He added that damaged gewog roads were addressed and that project developers have consistently supported local schools and temples.
“Even when projects are small in scale, they deliver meaningful benefits to the community when implemented responsibly,” he concluded.