Tata Power Company Ltd has entered into a strategic partnership with Druk Green Power Corporation Ltd (DGPC) to develop at least 5,000 MW of clean energy generation capacity in Bhutan.

DGPC is a subsidiary of Druk Holding and Investments Ltd, Bhutan's government-owned holding company with investments across sectors such as manufacturing, energy, natural resources, financial services, and communication.

“Tata Power's partnership with Druk Green Power Corporation reinforces our credentials as the most preferred clean energy partner in the region. Together, we are building 5,000 MW of clean energy capacity that will help harness Bhutan's hydropower potential and support both countries' growing energy demands with reliable and round-the-clock clean energy supply. Together we are shaping a new energy era," Praveer Sinha, chief executive and managing director, Tata Power, said in a statement.

The development is in line with Bhutan’s vision for its energy sector, which is to raise its overall power generation capacity to 25,000 MW by 2040, from 2,300 MW currently, for its energy security and regional energy integration, Tata Power said. The landlocked country plans to achieve this target through diversification in its energy portfolio beyond traditional hydropower, which would include solar and geothermal energy.