Khorlochhu Hydro Power
Independent hydropower generation for Bhutan's domestic energy needs.
| Date | Investors | Amount | Round |
|---|---|---|---|
* | $13.9m | Growth Equity non VC | |
| Total Funding | 000k | ||
Khorlochhu Hydro Power Limited (KHPL) is an independent power producer established to develop a 54-megawatt hydropower project in Bhutan. The company was incorporated on March 18, 2019, as a special purpose vehicle under the Companies Act of Bhutan 2016. This initiative is part of a broader effort by the Royal Government of Bhutan to encourage private sector participation in the country's rich hydropower sector.
The project, a run-of-the-river scheme, is located on the Khorlocchu river in the Trashigang district of eastern Bhutan. Unlike many of Bhutan's larger hydropower projects that focus on exporting electricity to India, KHPL is designed primarily to meet the increasing domestic energy demand within Bhutan itself, particularly in the six eastern districts. This focus on domestic supply aims to enhance the country's energy security and support local economic development.
The business model centers on the generation and sale of electricity. The project is being developed under a Build, Own, Operate, and Transfer (BOOT) concession agreement with the Royal Government of Bhutan. This means KHPL will operate the plant for a specified period, generating revenue by selling the electricity produced, before eventually transferring ownership to the government. The company's main client is Bhutan Power Corporation, the national utility to which it will sell the generated power.
Keywords: hydropower, renewable energy, Bhutan, independent power producer, run-of-the-river, energy generation, domestic energy, project finance, special purpose vehicle, public-private partnership