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Adani Power Enters Hydropower with 570 MW Bhutan JV

Adani Power Ltd has announced its first hydropower venture, partnering with Bhutan’s state-owned Druk Green Power Corporation to develop a 570 MW hydroelectric project at Wangchhu. Adani will hold a 49% stake in the joint venture, with an initial investment of Rs16,000 crore. Since its holding is below 50%, the JV’s financials will be recorded as share in profit rather than fully consolidated.

This move is part of Adani’s larger ambition to establish 5,000 MW of hydropower capacity in Bhutan. Hydropower offers more stable and predictable generation compared to solar and wind, with superior profitability to thermal since it relies on water instead of fossil fuels. However, it typically delivers lower IRR due to long gestation periods. The project will meet Bhutan’s winter demand while exporting surplus power to India in summer, without a fixed regulated equity return.

For Adani, this marks a significant diversification from its 18.1 GW thermal portfolio, which has grown 40?tween FY20 and FY25. Market analysts see the hydro venture as a positive long-term shift, though short-term financial impact will be limited. Adani’s future performance will hinge on tying up 12.5 GW of under-construction capacity through new power purchase agreements (PPAs) across Indian states.