Reliance Group’s Strategic Move into Bhutan’s Renewable Energy Sector
On October 2, 2023, the Anil Ambani-led Reliance Group officially announced its entry into the Bhutanese market, marking a significant step towards enhancing renewable energy production in the Himalayan nation. The group plans to establish a total of 1,270 MW through solar and hydroelectric projects, specifically designed to elevate Bhutan’s green energy capabilities while fostering economic growth.
Partnership and Commitment
The Reliance Group has formed a strategic partnership with Druk Holding and Investments Limited (DHI), the commercial and investment arm of the Royal Government of Bhutan. This collaboration is geared towards not only promoting green energy production but also integrating innovative green technologies into Bhutan’s infrastructure. With sustainability at the forefront, the project aims to explore the immense potential of Bhutan’s natural resources for renewable energy.
Project Overview
To spearhead these initiatives, Reliance has established Reliance Enterprises, a joint venture involving Reliance Infrastructure Limited and Reliance Power Limited. Over the next two years, Reliance Enterprises will focus on building a 500 MW solar power plant located in Galephu Mindfulness City. This facility will be developed in two phases and is projected to become the largest solar power installation in Bhutan, thus setting a benchmark in the region.
Hydroelectric Initiatives
Alongside the solar project, Reliance Power will also collaborate with DHI on the 770 MW Chamkharchhu-1 Hydroelectric Project. This run-of-the-river project aligns with Bhutan’s national energy policies and represents the largest foreign investment in Bhutan’s renewable energy sector. It will also stand as the largest direct investment from an Indian company in the country, further strengthening the economic ties between India and Bhutan.
Long-Term Vision
Ujjwal Deep Dahal, CEO of DHI, stated, “This partnership is committed to realizing world-class clean energy projects for both Bhutan and India.” The Reliance Group’s initiative is not just a financial investment; it reflects a long-term commitment to Bhutan’s sustainable development and adheres to the country’s philosophical backbone of the Gross National Happiness Index, which prioritizes well-being and environmental sustainability.
| Project Type | Capacity (MW) | Location | Investment Type |
|---|---|---|---|
| Solar Power Plant | 500 | Galephu Mindfulness City | Joint Venture |
| Hydroelectric Project | 770 | Chamkharchhu-1 | Foreign Direct Investment |
Conclusion
Reliance Group’s foray into Bhutan underscores a significant transition towards renewable energy, embodying a strategic alignment between India’s corporate ventures and Bhutan’s sustainable development goals. This initiative sets a robust framework for future collaborations while enhancing various energy sectors in Bhutan, securing a greener future for both nations.
