Reliance Power Shares Rally as ₹2,000 Crore Solar Project Gets Green Light in Bhutan

Reliance Power Shares Rally as ₹2,000 Crore Solar Project Gets Green Light in Bhutan May, 24 2025

Reliance Power’s Bold Solar Move Shakes Up Markets

Rarely does a single project announcement grab investor attention and ignite a stock rally, but that's exactly what's playing out with Reliance Power right now. The company’s latest foray into the renewable energy space has sparked renewed optimism among traders and industry watchers alike.

The buzz began after Reliance Power unveiled plans for a ₹2,000 crore solar power project in Bhutan. The venture is no small affair—this 500 MW solar plant is being built through a joint venture where Reliance Power will split ownership 50:50 with Druk Holding and Investments (DHI), which is the Bhutanese government’s main investment entity. This model, known as Build-Own-Operate (BOO), means the companies won’t just build the plant, but will also run and maintain it for the long haul.

This collaboration isn’t Reliance Power’s first with DHI. Back in 2024, the two agreed to jointly pursue solar and hydro projects, including the mammoth 770 MW Chamkharchhu-I hydroelectric plant. But this new solar project marks Bhutan’s biggest private-sector plunge into solar energy yet—and it puts the nation’s renewable ambitions firmly in the spotlight.

Shaking Up Bhutan’s Energy Mix and Investor Faith

Timing is everything in business, and Reliance Power’s move fits neatly into its bigger strategy to expand its clean energy footprint. The company isn't just talking about going green. It already operates over 2.5 gigawatt-peak (GWp) of solar assets and boasts more than 2.5 gigawatt-hours (GWh) of battery storage. Add in its total operational power capacity of 5,305 MW, and it’s clear why investors are paying attention. The fresh announcement sent Reliance Power shares surging by 10% over three trading days, a sign of big expectations around its shift toward renewables.

The trend also speaks to India's growing energy partnership with Bhutan. This project is a big lever for Bhutan’s ambitions to elevate its renewable portfolio and reduce reliance on imports or fossil fuels. It’s a win-win: Bhutan strengthens its energy independence, while Reliance Power cements its reputation as a champion in integrated solar and battery energy storage system (BESS) solutions. And because the project uses the BOO approach, both partners lock in long-term control and returns from what many experts consider the next big wave in electricity production.

What really speeds things up is that Reliance Power isn’t wasting time. International tenders for engineering, procurement, and construction (EPC) have already started rolling out. Behind the scenes, there’s a race to finalize long-term financing deals with multiple financial institutions—a crucial step to keeping the 24-month build timeline on track.

Once the plant is online, Bhutan’s renewable energy capacity will get a serious boost. For a country that already generates nearly all of its electricity from clean sources, this project adds scale and sets the stage for potential exports of green power to India and other neighbors in the future.

For investors, the message is clear: Reliance Power isn’t betting on buzzwords. This flagship solar project is the centerpiece of a genuine pivot to green energy, one that’s big enough to move markets and shake up the energy landscape across South Asia.