Reliance Power shares have been on a strong upward trend, hitting the 5% upper circuit for the 11th consecutive day on Thursday. The stock surged to ₹53.65 per share, reaching its highest level since January 2018. Over this period, the company’s shares have skyrocketed by 71%. This impressive rally is attributed to Reliance Power’s aggressive push to become nearly debt-free and its expansion into renewable and green energy, driving strong investor confidence.
As part of its growth strategy, the company announced its entry into Bhutan to develop solar and hydroelectric power projects. On October 2, 2024, Reliance Group, led by Anil Ambani, revealed a major partnership with Druk Holding and Investments Ltd. (DHI), which is the investment arm of Bhutan’s Royal Government. The aim of the partnership is to enhance Bhutan’s renewable energy capacity, including large solar and hydropower projects.
Among the new developments is a 500 MW solar power plant, as well as a 770 MW hydroelectric project. To manage these new ventures, the company has created a new entity called Reliance Enterprises, which will focus on clean energy investments and smart energy solutions in Bhutan.
The 500 MW solar project will be located in Gelephu Mindfulness City, executed in two phases over the next two years, and will be the largest solar power installation in Bhutan upon completion. The Chamkharchhu-1 hydroelectric project, a run-of-the-river initiative, will add to Bhutan’s existing power capacity. This collaboration marks the largest foreign direct investment by an Indian private company in Bhutan’s renewable energy sector, the company mentioned in a regulatory filing.
Reliance Enterprises, a joint venture between Reliance Infrastructure and Reliance Power, is tasked exclusively with promoting and investing in Bhutan’s renewable energy market.
Stellar Recovery in Reliance Group
Both Reliance Infrastructure and Reliance Power shares posted a remarkable recovery in September, with gains exceeding 60% for the month. The Anil Ambani-led Reliance Group is a major Indian conglomerate with a wide-ranging presence across various sectors of the economy.
Reliance Power, one of the group’s key entities, is a leading power generation company in India, with a total installed capacity of 5,340 MW. This includes the 4,000 MW Ultra Mega Power Project located in Sasan, Madhya Pradesh, which is the largest integrated thermal power plant in the world.
Reliance Infrastructure, another major arm of the group, is primarily active in the energy sector, focusing on power distribution in Delhi and power generation. The company also has significant interests in defense manufacturing and infrastructure development, overseeing key projects like the Mumbai Metro and various airport developments. Both companies have been essential players in Reliance Group’s recovery and future growth ambitions in the clean energy space.
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