Bhutan is endowed with an enormous wealth of hydropower potential estimated at 30,000 MW of which around 23,760 MW is techno-economically feasible. The vision of harnessing this vast natural wealth for the benefit of the country was conceived in the early 1960s by the visionary and far-sighted Third King of Bhutan Jigme Dorji Wangchuck and spearheaded by the Fourth King of Bhutan Jigme Singye Wangchuck.
Thus, an Agreement for the implementation of the Chhukha Hydroelectric Project was signed between the two governments of Bhutan and India on March 23, 1974, followed by the Agreements for Basochhu, Kurichhu and Tala Hydroelectric Project.
Hydropower development has now taken a centre stage.
So far, only five and half percent of the total hydropower potential amounting to 1,614 MW has been harnessed. However, this alone contributes about 24% of government revenue and 14% of Gross Domestic Product to the Royal Government of Bhutan. Considering the huge impact hydropower sector has had on the socio-economic development of the country, the Royal Government of Bhutan has embarked on a mission to achieve 10,000 MW installed capacity by 2020 in co-operation with the Government of India.
In this accelerated development of the hydropower sector in Bhutan, Druk Green Power Corporation Limited (DGPC) was formed to play a key role in this sector.
DGPC was incorporated on January 1, 2008, through the amalgamation of the erstwhile Chhukha, Kurichhu and Basochhu Hydropower Corporation, with the vision to "promote, develop and manage renewable energy projects, particularly hydropower, in an efficient, responsible and sustainable manner, and to maximize wealth and revenue of the nation."
After taking over Tala in April 2009, DGPC is now a Nu. 59 billion company, with more than 1,700 employees working under it. It is by far the largest wholly-owned corporate entity of the Royal Government of Bhutan placed under the Druk Holding and Investments Limited. DGPC is a commercial entity designed to ensure growth in its asset value through both upgrading existing plants and construction of new projects.
One of the main reasons for forming DGPC was to draw on the synergies of the various plants and to enable better sharing of scare resources. DGPC is a single entity that represents the interest of the Royal Government of Bhutan in the hydropower sector and implements the government's policy of accelerating hydropower development. DGPC, therefore, acts as an instrument of government policy enabling tackling integrated socio-economic tasks.
While DGPC operates and maintains huge hydropower assets, its other key mandate is to promote and develop new hydropower stations. DGPC is set to growfurther through the amalgamation of other projects and taking up of new projects on its own or through joint venture with private and public partnerships.