JSW Energy Partners with Bhutan’s Druk Green Power Corporation for 920 MW Punatsangchhu-III Hydroelectric Project
JSW Energy Limited, a leading power producer in India, has partnered with Druk Green Power Corporation Limited (DGPC), the state-owned entity of Bhutan, to undertake the joint development of the massive 920 MW Punatsangchhu-III Hydroelectric Project. This collaboration marks JSW Energy's debut venture into foreign power generation.JSW Neo Energy Limited (JSWNEL), a wholly owned subsidiary of JSW Energy Limited, signed a Shareholders' Agreement (SHA) with DGPC for the project, which is located on the Punatsangchhu River in the Wangdue Phodrang District of Bhutan. The venture will be executed on a Build-Own-Operate-Transfer (BOOT) basis through a special purpose joint venture company that is yet to be incorporated in Bhutan.
Under the agreement, DGPC, which represents the Royal Government of Bhutan, and JSWNEL will hold majority stakes in the new entity. Specifically, DGPC will maintain a 51% equity stake, while JSWNEL will account for 49%.
Project Details and Investment Structure
The project falls under the hydropower generation industry. JSWNEL's commitment to the venture includes an initial contribution of BTN 245 million. The JV is intended to be incorporated as a public company in Bhutan.Key details regarding the partnership and the project are summarized below:
| Particulars | Details |
|---|---|
| Project Name | Punatsangchhu-III Hydroelectric Project |
| Location | Punatsangchhu River, Wangdue Phodrang District, Kingdom of Bhutan |
| Project Type | Run-of-the-River scheme (Hydroelectric) |
| Business Model | Build-Own-Operate-Transfer (BOOT) |
| DGPC Equity Stake | 51% |
| JSWNEL Equity Stake | 49% |
| Initial Investment by JSWNEL | BTN 245 million |
Enhancing Hydro Portfolio and Green Transition
The agreement positions the project as a significant step for both organizations. The company, which operates across thermal, hydro, and renewables, has established expertise in large-scale power generation. It currently holds an operating portfolio of 1,781 MW in hydro power and possesses 29.6 GWh of locked-in energy storage capacity.JSW Energy Limited aims to achieve a total generation capacity of 30 GW and 40 GWh of energy storage capacity by the year 2030. The company currently has 32.4 GW of locked-in generation across its portfolio, comprising 14.9 GW operational and 13.5 GW under construction.
The project contributes to Bhutan's position as one of the few carbon-negative countries with a power system built on clean hydropower. JSW Energy stated that this partnership aligns with advancing its own green transition by providing stable, dispatchable capacity alongside wind and solar generation.
JSWENERGY Stock Price Movement
As of 2:56 PM, shares of JSW Energy Limited are slipping by 1.69%, shedding ₹9.50 to trade at ₹553.50 in live trading. The stock has witnessed significant intraday volatility, with the security trading within a range spanning from ₹552.2 to ₹563.0.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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