Tata Power Announces Commissioning Of Second Unit Of 126 MW Dagachhu Hydro Power Project In Bhutan To Provide Clean Power To India

• Successfully commissions 2nd unit of 63 MW Dagachhu Hydro project in Bhutan, makes it fully commercial
• First public-private partnership in infrastructure investment in Bhutan with participation from international stakeholders
• Reinforces Company’s commitment to commission 120 MW of new Hydro Power Project during the centenary year

Achieves full commissioning of this milestone hydro project in its centenary year

Tata Power, India’s largest integrated power company, achieved successful commissioning of 2nd unit of 63 MW of its 126 MW Dagachhu Hydro Power Corporation (DHPC) in Bhutan. The project has achieved full commissioning and clean power generated by this plant will be sold to India, thereby helping to reduce carbon emission.

The Dagachhu project is a Joint Venture initiative between Tata Power (and Druk Green Power Corporation, owned by Royal Government of Bhutan (RGoB), and National Pension & Provident Fund of Bhutan. It is a run of river hydro project located in Dagana Dzongkhag, Bhutan. DHPC has entered into a 25 year Power Purchase Agreement (PPA) with Tata Power Trading Company Limited (TPTCL, a company of Tata Power) for sale of power from the project. The power generated from the project shall be sold by TPTCL in the Indian power market.

The Unit-2 of 63 MW was commissioned within few days of commissioning of the Unit-1 in February 2015. The commercial flow of energy generated from the Unit 2 of Dagachhu project to India officially started at 09:54 am (Bhutan time) on 15th March, 2015 in a ceremony by Lam Neten as a Chief Guest.

Being the first PPP in infrastructure investment in Bhutan, Dagachhu Hydro Project serves as a model for other countries - particularly those with a low GHG-emitting grid - to harness the benefits of CDM towards enhancing the socioeconomic development of the country while meeting the escalating energy demand in a sustainable way. With the commissioning of the project, Tata Power’s total hydro generation capacity today stands at 576 MW and overall capacity at 8747 MW.

This power project aims to augment the power market in India by transmitting clean energy across the border. It is the first cross border project registered under UNFCCC’s Clean Development Mechanism. Through this project, India will be able to pave way for essential clean energy development process, which is a much-needed requirement for the power sector and is also in line with Tata Power’s commitment towards promoting clean and renewable energy.

Speaking on the development, Mr. Anil Sardana, CEO and Managing Director, Tata Power, said, “It is indeed an honour to announce the successful commissioning of the 2nd unit of the Dagachhu hydro project in Bhutan, after the commissioning of the 1st unit few weeks ago. The power generated from this project will provide a much needed boost to the power market in India. With Tata Power’s centenary year’s celebrations, we had committed to 120 MW of Hydro Power this year and we have achieved the same. We now aim to develop another new project of another 450 MW in 2015. Being the first cross border project registered under UNFCCC’s Clean Development Mechanism (CDM), it reinforces our commitment towards promoting clean and renewable energy sources. We would like to thank the Royal Government of Bhutan, Druk Green Power Corporation, Ministry of External Affairs of Bhutan & India, Ministry of Power, GoI and all the stakeholders, for the support extended in setting up this project in Bhutan.”

Mr. Chhewang Rinzin, Chairman, DHPC, and Managing Director, DGPC, said, “We are happy about the smooth commissioning of Unit 2 and in a timely manner. The successful commissioning of both the units of the 126 MW Dagachhu project, showcases the robustness and ability to undertake big projects in Bhutan and we will continue to build the suitable atmosphere to take up similar projects. Druk Green hopes to achieve similar successes with its future projects and would like to thank the Tata Power and Tata Power Trading for helping Dagachhu project to achieve this commissioning.”