Reliance Power announced on Monday that it has signed a commercial term sheet for a long-term power purchase agreement with Green Digital Pvt Ltd a company owned by Druk Holding and Investments Ltd (DHI) the investment arm of Bhutans Royal Government. As per a company statement Reliance Power and DHI will partner to establish Bhutans largest solar power project through a 50:50 joint venture. The project will have an installed capacity of 500 MW. With an estimated capital investment of up to Rs 2000 crores the project will follow the Build-Own-Operate (BOO) model. This is the largest private sector foreign direct investment (FDI) in Bhutans solar energy sector to date. This initiative is expected to play a pivotal role in advancing regional clean energy integration and enhancing cross-border infrastructure collaboration across South Asia it stated. Reliance Power has commenced the Engineering Procurement and Construction (EPC) tendering process adhering to international competitive bidding standards to ensure optimal technical execution and cost efficiency. The company has also initiated engagement with leading financial institutions to structure sustainable long-tenor project finance solutions focused on optimizing capital structure and enhancing overall financing efficiency. The project will be implemented in phased tranches over the next 24 months closely aligned with Bhutans strategic sustainability framework and broader regional energy transition agenda across South Asia. The project is expected to redefine Bhutans solar generation capacity surpassing all current solar installations. This initiative is poised to significantly diversify Bhutans renewable energy portfolio beyond hydropower and enhance grid stability and integration. In October 2024 Reliance Enterprises jointly promoted by Reliance Power Ltd and Reliance Infrastructure Ltd initiated a strategic partnership with DHI Ltd to develop solar and hydropower projects in Bhutan. The partnership also entails the execution and long-term operation of the 770 MW Chamkharchhu-I hydroelectric project a run-of-the-river asset structured under a long-term concession model aligned with Bhutans national energy strategy.  (With Inputs From PTI)