Adani Power Boosts Energy Links with Bhutan in Historic Hydropower Drive, Adani Share Price Reaches ₹543.50 

Adani Group has signed a Memorandum of Understanding (MoU) with state-owned Bhutanese Druk Green Power Corporation (DGPC) to work together for the development of 5,000 MW of new hydropower and pumped storage projects. This collaboration is twice the size of their prevailing partnership.

Adani Group & DGPC Collaboration: Key Highlights

• The agreement demonstrates thorough support from Indian as well as Bhutanese governments. This reflects a strong will to work towards a shared goal of achieving clean energy development and regional integration.
• The initiative as per the agreement is based on the existing Wangchhu Hydropower Project, at 570/900 MW. DGPC has a 51% holding and Adani has the balance 49% in the current joint venture. Additionally, the shareholders’ agreement of the project has also been signed by them.
• This Memorandum of Understanding (MoU) facilitates a broad framework for identifying, evaluating, and implementing a succession of these projects in several phases. It was signed in Bhutan, with the presence of high government authorities.
• The partnership has been designed with an aim to boost the capacity of Bhutan for generation of hydropower while simultaneously enabling power exports and integration into electricity markets of India. The key foundations of this collaboration are market access and secured takeoff.
• The project significantly supports Bhutan’s Renewable Energy Roadmap 2040. This aims at 20,000 MW of total installed capacity by utilising strategic partnerships and private investment to tap hydropower, solar, and geothermal resources.
• DGPC, which is the premier hydropower developer of Bhutan, will be leading the implementation of this project taking advantage of its proven experience. This meaningful effort is made with the goal to enhance national energy security and sustainable economic growth.

Market Reaction to Adani Group & DGPC Collaboration

• Despite the agreement strengthening Adani’s focus towards increasing its renewable energy business, the short-term performance of the company’s stock has been negligible. 
• This conservative reaction of the market might be because of the early stage of the agreement, as the MoU is a preliminary intent without agreed-upon terms. 
• Additionally, the previous negotiations between Adani and DGPC have run into roadblocks, particularly in terms of ownership stakes and concession periods. 
• Another possible reason for this low optimism might be because investors are waiting for further clarity regarding the project structure, financing terms, and other regulatory approvals before they make changes in their positions. 
• As of 12th May 2025, the stock is trading at ₹543.50 as per the NSE, indicating a return of 6.15% within a day. 

Final Thoughts

The agreement of collaboration between Adani Group and Bhutan’s DGPC marks a significant step towards clean energy development. While the market reaction has been conservative, investor confidence may improve with further updates, reflecting the long-term potential of this strategic partnership.

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Disclaimer: Investment in the share market is subject to risk. This news article is for informational purposes only. Conduct your own research before investing in shares and other securities. 

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