Reliance Power Ltd.RPOWER₹45.62 +1.22%

In a major push for regional clean energy cooperation, Reliance Power Limited has signed a commercial term sheet for a long-term power purchase agreement (PPA) with Green Digital Private Limited (GDL), a company owned by Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan.

Post the announcement, Reliance Power surged, reaching an intraday high of ₹46.73 apiece. 

Under the agreement, Reliance Power and DHI will jointly develop Bhutan’s largest solar power project, with a planned capacity of 500 megawatts (MW). The greenfield project, to be executed under a 50:50 joint venture structure, will be developed at a capital outlay of up to ₹2,000 crore. This represents the single largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date.

The project is being undertaken under the Build-Own-Operate (BOO) model and will be implemented in phased tranches over the next 24 months. It is expected to significantly enhance Bhutan’s solar power capacity, currently dominated by hydropower, and diversify its renewable energy mix while also contributing to greater regional grid integration across South Asia.

Reliance Power has already initiated the Engineering, Procurement, and Construction (EPC) bidding process in line with international competitive standards, aiming to ensure technical robustness and cost efficiency. The company is also engaging with leading financial institutions to raise sustainable, long-term project financing tailored to optimize the capital structure and improve financial viability.

The initiative builds on a broader partnership formalized in October 2024 between Reliance Enterprises (jointly promoted by Reliance Power and Reliance Infrastructure) and DHI. In addition to the solar project, the collaboration includes the execution of the 770 MW Chamkharchhu-I hydroelectric project, a run-of-the-river plant aligned with Bhutan’s national energy strategy and structured under a long-term concession model.

This latest development further strengthens Reliance Power’s growing clean energy portfolio, which currently includes 2.5 GWp of solar capacity and over 2.5 GWh of battery energy storage systems (BESS), making it India’s largest integrated Solar + BESS platform.

With the Bhutan project, Reliance Power deepens its presence in the South Asian renewable energy space, while contributing to sustainable energy security and economic integration in the region.

Over the last three years, Reliance Power has given multibagger returns of more than 250%. 

Let’s take a look at its Factor Analysis scores:

Note: The stock price mentioned is as of 3:30 PM.

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