India commits to fund Bhutan's 1020 MW Punatsangchhu-II hydro project

This is a Joint Vision Statement between India and Bhutan reaffirming their commitment to strengthen their bilateral clean energy partnership, focusing on hydro-power, solar, and green hydrogen projects to enhance regional energy security and economic development.

Who it concerns: The agreement involves the Governments of India and Bhutan, specifically their Prime Ministers. It affects the energy sector, including hydro-power, solar, and green hydrogen industries, as well as financial institutions in India and Bhutanese power producers. Indian entities are identified as potential strategic partners for new projects.

What was agreed

• Commissioning of the 1020 MW Punatsangchhu-II Hydro-electric Project in 2024.
• Continuation of expert-level discussions for the 1200 MW Punatsangchhu-I HEP.
• Development of new energy projects in hydro-power, solar, and green hydrogen, including participation of Indian entities as strategic partners.
• Government of India to facilitate access to financing from Indian financial institutions and market for power sale for new Bhutanese hydro-power projects.
• Facilitation of market access for Bhutanese power producers in India through mutually agreed arrangements and delivery points.
• Regular consultations to enable investments in Bhutanese energy projects and ensure seamless cross-border electricity trade.
• Strengthening cooperation in energy efficiency and conservation through capacity development and R&D.

Also in the document

• India commits to facilitating necessary access to financing from Indian financial institutions for new and upcoming hydro-power projects in Bhutan.
• The statement explicitly includes green hydrogen as a field for new energy project development.
• The 1020 MW Punatsangchhu-II Hydro-electric Project is targeted for commissioning in the current year (2024).