Wangchhu Hydroelectric Project

The Wangchhu Hydroelectric Project was recently in the news after Hindustan Construction Company (HCC) secured a ₹127 crore contract from Wangchhu Hydroelectric Power Limited (WHPL) for the execution of construction works related to the project.

About the Wangchhu Hydroelectric Project

• The Wangchhu Hydroelectric Project is a 570 MW run-of-river hydropower project being developed on the Wangchu River in the Chukha District of Bhutan.

• The project is one of the major bilateral energy initiatives between India and Bhutan, aimed at harnessing Bhutan's abundant hydropower potential while enhancing regional energy security.

• The project is designed as a peaking run-of-river hydropower plant, enabling efficient electricity generation during periods of high demand while minimizing the need for large water storage reservoirs.

River on Which the Project is Located

• The project is being constructed on the Wangchu River, which is known as the Raidāk River after entering India.

• The Wangchu River is an important tributary of the Brahmaputra River and originates in the Himalayan region of Bhutan before flowing into the Indian states of West Bengal and Assam, eventually joining the Brahmaputra River.

Ownership and Implementation

• The project is being developed by Wangchhu Hydroelectric Power Limited (WHPL), a joint venture company established between India's Adani Power Limited (APL) and Bhutan's state-owned Druk Green Power Corporation Limited (DGPC).

• Under the ownership structure, Druk Green Power Corporation (DGPC) holds a majority stake of 51%, while Adani Power Limited owns the remaining 49%. This ownership pattern ensures Bhutan retains majority control over the project while benefiting from India's technical expertise and investment.

Project Cost and Development Model

• The project has an estimated investment of ₹6,000 crore and is being implemented under the Build, Own, Operate, Transfer (BOOT) model.

• Under the BOOT framework, Adani Power will finance, construct, own, and operate the hydropower project for a specified concession period.

Significance of the Project

• The Wangchhu Hydroelectric Project is the first project to be undertaken under the Memorandum of Understanding (MoU) signed in May 2025 between Adani Power Limited and Druk Green Power Corporation (DGPC).

• The MoU envisages the joint development of 5,000 MW of hydropower capacity in Bhutan, representing one of the largest energy cooperation initiatives between the two countries.

• The project therefore serves as a milestone in expanding the strategic energy partnership between India and Bhutan.

Technical Features

• The Wangchhu Hydroelectric Project will function as a peaking run-of-river power station, allowing greater flexibility in electricity generation during periods of peak demand.

• The power station will consist of four generating units, each having an installed capacity of 142.5 MW, giving the project a total installed capacity of 570 MW.

• Once operational, the project is expected to generate approximately 2,478.93 Gigawatt-hours (GWh) of electricity annually.

Benefits to Bhutan

• The project will play a crucial role in strengthening Bhutan's energy security, particularly during the winter season, when river flows decline and hydropower generation decreases.

• The peaking capability of the project will help meet Bhutan's peak winter electricity demand, ensuring a more reliable power supply for domestic consumers.

Benefits to India

• During the summer months, when river discharge is high and electricity generation exceeds Bhutan's domestic requirements, surplus electricity will be exported to India.

• This will support India's growing demand for clean renewable energy, strengthen cross-border electricity trade, and contribute to achieving India's renewable energy and climate commitments.

Importance of India–Bhutan Hydropower Cooperation

• Hydropower cooperation has been one of the most successful pillars of India–Bhutan bilateral relations for several decades.

• India has played a major role in financing, constructing, and purchasing electricity from several hydropower projects in Bhutan, including Chukha, Kurichhu, Tala, Mangdechhu, and Punatsangchhu projects.

Environmental Perspective

• As a run-of-river project, the Wangchhu Hydroelectric Project is expected to have relatively lower environmental impacts compared to large storage-based dams.

• However, careful environmental management will still be essential to protect aquatic biodiversity, maintain ecological river flows, and preserve the fragile Himalayan ecosystem.

Conclusion

The Wangchhu Hydroelectric Project represents an important milestone in India–Bhutan energy cooperation. By combining Bhutan's vast hydropower potential with India's investment, technology, and energy market, the project contributes to regional energy security, sustainable development, and clean electricity generation.