Key Highlights
- JSW Energy subsidiary JSW Neo Energy signs an agreement with Bhutan’s DGPC for a 920 MW hydropower project.
- The Punatsangchhu-III Hydroelectric Project will be developed in Wangdue Phodrang District, Bhutan.
- DGPC will hold a 51% stake in the proposed joint venture.
- JSW Neo Energy will hold a 49% stake in the proposed joint venture.
- JSW Neo Energy will initially contribute BTN 245 million to the joint venture.
- The project will be developed on a Build-Own-Operate-Transfer basis.
- The project marks JSW Energy’s first power generation venture outside India.
- JSW Energy has 32.4 GW of total locked-in generation capacity.
- JSW Energy has 29.6 GWh of locked-in energy storage capacity.
- JSW Energy targets 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030.
JSW Energy Limited has announced that its wholly owned subsidiary, JSW Neo Energy Limited, has signed a Shareholders’ Agreement with Druk Green Power Corporation Limited (DGPC), a company wholly owned by the Royal Government of Bhutan, for the joint development of a 920 MW hydroelectric power project in Bhutan.
The agreement was signed on August 12, 2026, for the development of the Punatsangchhu-III Hydroelectric Project in Wangdue Phodrang District, Bhutan. The project will be developed through a joint venture company proposed to be incorporated in Bhutan.
JSW Neo Energy to Hold 49% Stake
Under the proposed joint venture structure, DGPC will hold a 51% equity stake, while JSW Neo Energy will hold the remaining 49% stake.
JSW Neo Energy will subscribe to 49% of the equity capital of the joint venture in cash. The initial contribution from JSW Neo Energy is expected to be BTN 245 million, with any further funding to be based on the future development requirements of the project.
The proposed joint venture will operate in the hydropower generation sector and will develop the 920 MW Punatsangchhu-III project on a Build-Own-Operate-Transfer (BOOT) basis.
920 MW Punatsangchhu-III Hydroelectric Project
The project is planned as a run-of-the-river hydropower scheme on the Punatsangchhu River in Wangdue Phodrang District, Kingdom of Bhutan.
The joint venture is expected to undertake the development of the project, with the Detailed Project Report currently under preparation jointly by DGPC and JSW Energy.
The project marks JSW Energy’s first power generation venture outside India. The company said the partnership will combine the hydropower development and operating experience of the two organisations.
JSW Energy’s Generation and Storage Portfolio
JSW Energy currently has a total locked-in generation capacity of 32.4 GW. This includes 14.9 GW of operational capacity and 13.5 GW under construction, along with a 4.0 GW development pipeline.
The company has a hydro portfolio of 1,781 MW and is described in the release as India’s largest private hydropower generator.
JSW Energy also has 29.6 GWh of locked-in energy storage capacity, comprising 26.4 GWh of pumped hydro storage and 3.2 GWh of battery energy storage systems.
The company has set a target of reaching 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030, while aiming to achieve carbon neutrality by 2050.
Bhutan Hydropower Partnership
The Punatsangchhu-III project expands JSW Energy’s presence into international hydropower development. Bhutan has substantial hydropower potential, with the country’s power generation system largely based on hydropower and other renewable energy sources.
The partnership between JSW Neo Energy and DGPC will involve the development of the 920 MW project through the proposed Bhutan-based joint venture, subject to the required regulatory and other approvals.