JSW Energy and Bhutan’s Druk Green Power Corporation (DGPC) have signed a shareholders’ agreement for the joint development of the 920MW Punatsangchhu-III Hydroelectric Project in Bhutan.
The agreement, signed in the presence of Bhutan’s Prime Minister, will see the project developed through a joint venture company. DGPC will hold a 51% equity stake, while JSW Neo Energy, a wholly owned subsidiary of JSW Energy, will hold the remaining 49%.
Located in Wangdue Phodrang District, Punatsangchhu-III will be JSW Energy’s first power generation venture outside India. Preparation of the detailed project report is currently under way jointly by DGPC and JSW Energy.
DGPC is a wholly owned subsidiary of Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan, and operates hydropower assets across the country. Bhutan has developed much of its hydropower sector in partnership with India, with electricity exports forming an important part of bilateral energy cooperation.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said: “We are privileged to partner with Druk Green Power Corporation on Punatsangchhu-III, our first power generation venture outside India – bringing together two organisations with deep experience in developing and operating large hydroelectric assets in Himalayan terrain. Bhutan is one of the world’s few carbon-negative nations, and we are proud to contribute to the further development of its clean energy resources.
“At 920 MW, this project meaningfully strengthens our hydro portfolio and advances our green transition, adding clean, dispatchable capacity that complements wind and solar generation and supports stable, predictable cash flows. The partnership also reflects the enduring energy cooperation between India and Bhutan.”
JSW Energy currently has an operating hydropower portfolio of 1781MW and describes itself as India’s largest private hydropower generator. Across its wider generation portfolio, the company has 32.4GW of locked-in capacity, comprising 14.9GW in operation, 13.5GW under construction across thermal, hydro and renewable energy, and a further 4GW development pipeline.
Its energy storage portfolio totals 29.6GWh, including 26.4GWh of pumped hydro storage and 3.2GWh of battery energy storage. JSW Energy is targeting 30GW of generation capacity and 40GWh of energy storage capacity by 2030, with a longer-term target of achieving carbon neutrality by 2050.
