Reliance Power Limited has inked a commercial term sheet for a long-term power purchase agreement (PPA) with Green Digital Private Limited (GDL). GDL is owned by Druk Holding and Investments Limited (DHI), which is the investment arm of the Royal Government of Bhutan.
Under the agreement, Reliance Power and DHI will jointly develop a 500 MW solar power project in Bhutan through a 50:50 venture. The project has an estimated capital outlay of up to Rs 20 billion under the build-own-operate model. It will be implemented in phased tranches over the next 24 months.
Furthermore, Reliance Power has commenced the engineering, procurement, and construction tendering process for the project. It has also started engagement with financial institutions to structure sustainable, long-tenor project finance solutions.
