JSW Energy has expanded its international footprint by signing a Shareholders' Agreement for a major hydroelectric project in Bhutan. The agreement, executed on August 12, 2026, involves its wholly owned subsidiary, JSW Neo Energy Limited (JSWNEL), and Druk Green Power Corporation Limited (DGPC). The partnership targets the joint development of the 920 MW Punatsangchhu-III Hydroelectric Project located on the Punatsangchhu River in the Wangdue Phodrang District of Bhutan. This deal represents JSW Energy's first power generation venture outside India, signaling a strategic move into cross-border renewable energy assets.

The project will be structured as a Build-Own-Operate-Transfer (BOOT) scheme through a special purpose joint venture company proposed to be incorporated in Bhutan. Under the terms of the agreement, DGPC, which is wholly owned by the Royal Government of Bhutan, will hold a 51% equity stake in the JV, while JSWNEL will hold the remaining 49%. The signing ceremony was attended by the Prime Minister of Bhutan, underscoring the bilateral significance of the energy cooperation between India and Bhutan.

Financial Structure and Investment Details

JSWNEL will subscribe to its 49% equity stake in cash, with an initial contribution set at BTN 245 million. Any further capital infusion will be determined based on the subsequent development stages of the project. The detailed project report is currently being prepared jointly by DGPC and JSW Energy. The key parameters of the agreement are summarised below:

Strategic Context and Portfolio Impact

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, stated that the partnership brings together two organizations with deep experience in developing large hydroelectric assets in Himalayan terrain. He noted that the 920 MW addition meaningfully strengthens the company's hydro portfolio and advances its green transition by adding clean, dispatchable capacity that complements wind and solar generation. Bhutan is recognized as one of the few carbon-negative countries globally, with a power system built entirely on clean hydropower. DGPC brings decades of design, engineering, and operating expertise from its management of Bhutan's hydropower assets. The project aligns with JSW Energy's broader vision to achieve carbon neutrality by 2050.

What the Numbers Show

This acquisition diversifies JSW Energy's geographic risk while leveraging its existing expertise in hydropower. Currently, JSW Energy reports a total locked-in generation capacity of 32.4 GW, comprising 14.9 GW operational and 13.5 GW under construction across thermal, hydro, and renewables. Within this portfolio, the hydro segment accounts for an operating capacity of 1,781 MW, making JSW Energy the largest private hydropower generator in India. The addition of 920 MW in Bhutan represents a significant expansion of this specific segment, enhancing the proportion of dispatchable renewable energy in its overall mix. The company also maintains a pipeline of 4.0 GW and aims to reach 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030.

JSW Energy has significantly expanded its power generation portfolio since April 2026, adding 1,166 MW of renewable capacity alongside 300 MW of thermal capacity, highlighting growth across both clean and conventional energy segments.

Capacity Additions at a Glance

The following table summarises the capacity additions reported by JSW Energy since April 2026:

Renewable and Thermal Expansion

JSW Energy's addition of 1,166 MW in renewable capacity since April 2026 represents a substantial step in its clean energy growth. Simultaneously, the company has added 300 MW of thermal capacity during the same period, demonstrating a parallel expansion in conventional power generation.

Key Highlights

• Renewable capacity addition: 1,166 MW since April 2026
• Thermal capacity addition: 300 MW since April 2026
• Expansion spans both renewable and thermal energy segments