Adani Power’s South Asia Power Play: Bhutan Hydro JV Signals Bold Regional Expansion Published By Anupam Nath Adani Power is aggressively expanding beyond India's borders, marking a strategic pivot towards South Asian hydropower and thermal projects. The company's recent 50:50 joint venture with Bhutan's Druk Green Power Corporation (DGPC) for a 570 MW hydro project in Bhutan underscores this ambition, building on a broader May 2025 MoU for 5,000 MW of hydropower development. This move positions Adani as a key player in regional energy security amid surging power demand.Bhutan Breakthrough: The Wangchhu Project CatalystThe flagship Wangchhu hydropower project represents Adani Power's first major international hydro foray. Signed in September 2025, the agreement with DGPC—a Bhutan government entity—targets rapid development in Bhutan's hydro-rich Wangchhu basin. A company spokesperson highlighted exploration of similar 500-570 MW opportunities across South Asia, leveraging Adani's expertise in project execution and operations.Bhutan's hydropower potential exceeds 30,000 MW, with rivers fed by Himalayan glaciers offering clean, reliable baseload power. Adani's Godda plant in Jharkhand already exports to Bangladesh, providing a ready market. This JV not only diversifies Adani's portfolio from thermal dominance but also taps export revenues, as Bhutan sells surplus power to India via established grids. Analysts see this as low-risk entry: Adani handles development, while DGPC ensures regulatory ease.Competition intensifies with Tata Power's parallel Bhutan bet—acquiring 40% stake in the 1,125 MW Dorjilung project for Rs 1,572 crore. Yet Adani's scale gives it an edge, potentially pressuring tariffs and accelerating regional integration.Ambitious Capacity Roadmap: 41 GW by FY32Adani Power's vision is staggering: scaling from 18.15 GW current capacity to 41.87 GW by FY32, adding 24 GW thermal alone—30% of India's planned thermal expansion. This requires Rs 2 lakh crore capex over six years, funded via internal accruals, debt, and equity. Thermal remains core, justified by India's coal dependency despite green pushes. Peak demand hit 235 GW in 2024, projected at 500 GW by 2032—thermal fills intermittency gaps from renewables. Hydro adds stability; Bhutan's projects offer 90%+ capacity factors versus solar's 20-25%. Strategic Implications for India and South AsiaThis expansion aligns with India's energy diplomacy. Bhutan-India power ties are deep: India buys 70% of Bhutan's exports. Adani's role enhances this, potentially via SAARC grids linking Nepal, Bangladesh, and Sri Lanka. Bangladesh, facing shortages, could import more from Godda-adjacent hydro.Risks loom: Geopolitical tensions (China's Bhutan border claims), environmental clearances in fragile Himalayas, and rupee volatility for exports. Yet Adani's track record—delivering Godda ahead of schedule—mitigates these. Financially, EBITDA margins could rise 15-20% from hydro's lower opex versus thermal. Regional Energy Empire: Broader Geopolitical PlayAdani's South Asia push mirrors Gautam Adani's infrastructure empire—from ports to airports. Hydro exports could generate $1-2B annual forex, bolstering India's trade balance. Sustainability angle: Hydropower cuts carbon 80% vs coal, aiding net-zero goals, though run-of-river designs minimize displacement. Challenges include monsoonal variability and financing—IFC/ADB loans likely. Success here could spawn Nepal Punatsangchhu-like JVs. For investors, Adani Power's 40% ROE trajectory makes it a buy amid power scarcity. In sum, this Bhutan bet is no one-off—it's Adani Power architecting South Asia's energy backbone, blending thermal muscle with hydro agility for decade-long dominance.
