JSW Energy has signed a pivotal agreement with Bhutan's Druk Green Power Corporation Limited (DGPC) to jointly develop the 920 megawatt Punatsangchhu-III Hydroelectric Project, marking the company's first power generation venture outside India. According to the company, the agreement was signed in the presence of Bhutan's Prime Minister, highlighting the strategic importance of this partnership. The project will be developed through a joint venture where DGPC will hold 51% and JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy, will hold 49%. The project is located on the Punatsangchhu River in Bhutan's Wangdue Phodrang District and will be developed on a Build-Own-Operate-Transfer basis.
JSW Neo Energy Limited will subscribe to its 49% stake in cash with an initial contribution of BTN 245 million. As reported by CNBC TV18, any further infusion will depend on the development of the project. The Punatsangchhu-III project is a run-of-the-river hydroelectric scheme and the proposed joint venture company is yet to be incorporated in Bhutan, while the Detailed Project Report is being prepared jointly by JSW Energy and DGPC. Currently, the joint venture is preparing the detailed project report (DPR) for project execution.
According to CNBC TV18, the 920 MW project will strengthen JSW Energy's hydro portfolio by adding capacity that complements wind and solar generation. Sharad Mahendra, Joint Managing Director and Chief Executive Officer of JSW Energy, commented that the partnership would bring together the two organisations' experience in developing and operating hydroelectric assets in Himalayan terrain. "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," said Mahendra. The joint venture will require regulatory approvals in Bhutan, including from the Corporate Regulatory Authority and for foreign direct investment.
As reported by CNBC TV18, the Bhutan project expands JSW Energy's presence in hydropower beyond its existing operations in India. The company has 1,781 MW of operating hydro capacity and has 32.4 GW of locked-in generation capacity, comprising 14.9 GW of operational capacity and 13.5 GW under construction, along with a 4 GW pipeline. Additionally, it 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. The company is the largest private hydropower generator in India and has a total locked-in generation capacity of 32.4 GW across thermal, hydro and renewables.
