Bhutan has inked a pact with India's Reliance Group to construct 1,270 megawatts of renewable energy projects in the Himalayan nation as it aims to transform into an energy-exporting powerhouse. Small and landlocked, with a population under 800,000, Bhutan is situated between China and India and is renowned for its policy of prioritizing 'Gross National Happiness' over economic growth. However, this policy has not aided the government in addressing widespread unemployment, prompting thousands of young people to emigrate. The energy project is integral to broader initiatives to reverse this trend by attracting foreign investment to spur economic growth, including through a highly anticipated special economic zone dubbed the 'Gelephu Mindfulness City'.
'Bhutan is abundant in energy resources, and India's demand makes this partnership even more significant,' stated Ujjwal Deep Dahal, CEO of Bhutan's state-owned Druk Holding and Investments (DHI), in a recent press release. The project involves Reliance Group, led by Indian billionaire Anil Ambani, collaborating with DHI to construct 770 megawatts of hydropower and 500 megawatts of solar projects in Bhutan. If completed, these projects would account for just over half of Bhutan's current installed capacity of 2,444 megawatts, with over 99 percent being hydropower. The agreement did not disclose the investment cost or the completion date for the hydro project, known as Chamkharchhu-1, but aims to operationalize the solar plant within the next two years. A portion of the combined power output will be exported to India, Bhutan's primary diplomatic and trade partner.
'We aspire to become the leading Indian player in Bhutan, contributing to a more sustainable future,' Ambani remarked in a press release. 'In this partnership, I also urge Bhutan to export its happiness to the 1.4 billion people in India.' Some of the projects will also power the Mindfulness City, envisioned as a future hub for foreign companies leveraging the kingdom's inexpensive and abundant hydropower resources, including for data centers and artificial intelligence firms. There has been no official confirmation regarding the commencement date of construction or the total budget estimate for this project.
