The project will be developed through a joint venture in which DGPC will hold 51% and JSW Neo Energy, 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 will subscribe to its 49% stake in cash, with an initial contribution of BTN 245 million. Any further infusion will depend on the development of the project, according to JSW Energy’s stock exchange filing.
920 MW hydro project in Bhutan
The Punatsangchhu-III project is a run-of-the-river hydroelectric scheme. 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.
Commenting on the agreement, Sharad Mahendra, Joint Managing Director and Chief Executive Officer of JSW Energy, said the partnership would bring together the two organisations’ experience in developing and operating hydroelectric assets in Himalayan terrain.
Mahendra also said the 920 MW project would “strengthen our hydro portfolio” by adding capacity that complements wind and solar generation.
DGPC is wholly owned by Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan. The joint venture will require regulatory approvals in Bhutan, including from the Corporate Regulatory Authority and for foreign direct investment.
Also read: JSW Energy gets 60% of its power capacity from renewables after adding 1,166 MW since April
JSW Energy’s presence in hydropower
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, according to the filing.
JSW Energy 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. It also has 29.6 GWh of locked-in energy storage capacity.
The company has been expanding across thermal, hydro and renewable power generation, with the Bhutan project being its first power-generation venture outside India.
Shares of JSW Energy closed at ₹555.50 on Wednesday, down 1.33%
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