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Shares of Reliance Power Ltd surged 3.7% on Monday, May 19, after the company said it signed a commercial term sheet for a long-term Power Purchase Agreement (PPA) with Green Digital Pvt Ltd (GDL), for the development of a 500 MW solar power installation.
Green Digital is owned by Druk Holding and Investments Ltd (DHI), the investment arm of the Royal Government of Bhutan.
The agreement outlines the development of Bhutan’s largest solar power project via a 50:50 joint venture between Reliance Power and DHI, the company informed bourses in a stock exchange filing.
The project, under the build-own-operate (BOO) model, involves a capital outlay of up to ₹2,000 crore, marking the largest foreign direct investment (FDI) in Bhutan’s solar energy sector to date, Reliance Power said in an exchange filing.
This solar initiative is expected to diversify Bhutan’s renewable energy portfolio, which is currently heavily reliant on hydropower. Also, it will enhance grid stability and contribute to regional clean energy integration and cross-border infrastructure collaboration in South Asia.
In October 2024, Reliance Enterprises — jointly promoted by Reliance Power Ltd and Reliance Infrastructure Ltd — entered into a strategic partnership with DHI to jointly develop solar and hydropower projects in Bhutan. The partnership includes the execution and long-term operation of the 770 MW Chamkharchhu-I hydroelectric project, structured under a long-term concession model.
The 500 MW solar project is scheduled to be developed in phases over the next 24 months, in alignment with Bhutan’s national sustainability framework and the broader regional energy transition agenda.
Reliance Power has initiated the engineering, procurement, and construction (EPC) bidding process in accordance with international competitive bidding standards. The company is also engaging with financial institutions to structure long-term, sustainable project financing solutions aimed at optimising capital structure, the company added.
Shares of Reliance Power were trading 2.37% higher at ₹46.15 on the BSE around 11 AM.
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