Tata Power has commissioned 63 MW sized Unit 1 of its 126 MW Dagachhu Hydro Power Corporation (DHPC) in Bhutan. This project is in line with Tata Power's commitment to commission 120 MW of new Hydro Power Project this year as part of the centenary year celebration theme of invisible goodness, and is the first cross border project registered under UNFCCC's Clean Development Mechanism (CDM).
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. With the commissioning of the project, Tata Power’s total hydro generation capacity today stands at 513 MW and overall capacity at 8684 MW.
The Dagachhu Project is 126 MW (2X63 MW) run of river hydro project located in Dagana Dzongkhag, Bhutan. The commercial flow of energy generated from the Dagachhu project to India officially started at 00:30 hours in the morning (Bhutan time) of Feb. 21, 2015. The test run for the second unit of 63 MW will also be immediately started and expected to be completed soon.
DHPC has entered into a 25 year Power Purchase Agreement (PPA) with Tata Power Trading Company (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.
Anil Sardana, chief executive officer and managing director, Tata Power, said, "We are delighted to announce the commissioning of the Dagachhu hydro project in Bhutan. Hydro power is an intrinsic part of our clean energy mix and we aim to develop new Hydro project of yet another 450 MW this year. We are committed to reducing our carbon footprint through the generation of 20-25 per cent of our total capacity through 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."
Shares of the company gained Rs 0.95, or 1.1%, to trade at Rs 86.95. The total volume of shares traded was 255,917 at the BSE (12.31 p.m., Tuesday).