March 13, 2025
THIMPHU – Bhutan and India have further reinforced their long-standing energy partnership with the signing of four key power purchase and sale agreements on March 10 in Thimphu.
The agreements, signed between the Druk Green Power Corporation (DGPC) and PTC India, will deepen cross-border electricity trade, enhancing energy security, and driving economic benefits for both nations.
DGPC’s managing director, Dasho Chhewang Rinzin, and PTC India’s director (Marketing), Harish Saran, formalised the agreements in the presence of Minister of Energy and Natural Resources, Gem Tshering, and senior officials from both countries.
According to DGPC, the agreements will facilitate a seamless exchange of electricity, ensuring Bhutan’s hydropower sector remains a vital contributor to regional energy stability.
The first agreement extends the existing Power Purchase Agreement (PPA) for electricity exports from the 336 MW Chhukha hydropower plant to India for an additional two years, until December 31, 2026.
The second agreement extends the crucial arrangement for Bhutan to import electricity from India during winter months when river discharge is low.
Under this Power Sale Agreement (PSA), Bhutan will be able to import up to 2,000 MW of electricity from PTC India during the lean season of 2025-2026.
The third agreement—the First Amendment to the Nikachhu Power Export Agreement—increases Bhutan’s power sales limit from the 118 MW Nikachhu hydropower plant to the Indian energy exchange from 50 MW to 60 MW.
In addition, the two parties also signed the First Supplementary Agreement for the export of summer surplus power from the 64 MW Basochhu hydropower plant into the Indian energy exchange for another year.
Minister of Energy and Natural Resources Gem Tshering said that the excellent cooperation between India and Bhutan in the energy sector is a cornerstone of the exemplary and friendly relations between the two countries.
He expressed gratitude to the government and people of India for their continued support in harnessing Bhutan’s huge hydropower potential.
Lyonpo said that the signing of the four agreements between DGPC and PTC India, which extended and expanded the existing arrangements for the cross border power sales and purchases between two countries, would not have been possible without the continued support of the Embassy of India in Thimphu and the Government of India.
DGPC and PTC India also discussed other areas of strategic partnership and cooperation, including investments in hydropower and diversifying the cross-border energy trade options.
The signing ceremony was attended by senior representatives from PTC India, the Department of Energy, Druk Holding and Investments, and DGPC.