JSW Energy Limited today announced the signing of a Shareholders’ Agreement with Druk Green Power Corporation Limited (“DGPC”), a wholly owned subsidiary of Druk Holding & Investments – the commercial arm of the Royal Government of Bhutan, for the joint development of the 920 MW Punatsangchhu-III Hydroelectric Project in Wangdue Phodrang District, Bhutan.
The Agreement was signed in the gracious presence of the Honourable Prime Minister of Bhutan. Pursuant to the Agreement, the project will be developed through a joint venture company in which DGPC will hold 51% and JSW Neo Energy (wholly owned subsidiary of the Company) will hold 49% of the equity share capital. This marks the Company’s first power generation venture outside India. The Detailed Project Report preparation is under way, jointly by DGPC and the Company.
Bhutan is among the world’s few carbon-negative countries, with a power system built entirely on clean hydropower and being expanded to other renewables such as solar. The country’s Himalayan river systems offer substantial untapped hydroelectric potential. Bhutan has a long-established record of developing and operating large hydro assets, mostly in partnership with India — a relationship that exemplifies the excellent bilateral cooperation between the two countries. DGPC, as Bhutan’s generation utility, brings decades of design engineering, development, and operating expertise across the country’s hydropower assets to the partnership.
Commenting on the agreement, Sharad Mahendra, Joint Managing Director and CEO, 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.”
The Company has a total locked-in generation capacity of 32.4 GW, comprising 14.9 GW operational and 13.5 GW under construction across thermal, hydro and renewables, and a pipeline of 4.0 GW. In hydro, the Company has an operating portfolio of 1,781 MW and is the largest private hydropower generator in India. The Company also has 29.6 GWh of locked-in energy storage capacity, comprising 26.4 GWh of pumped hydro storage and 3.2 GWh of battery energy storage systems. JSW Energy aims to reach 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030, and to achieve carbon neutrality by 2050.
