India-Saudi Arabia power grid pact to accelerate shift towards renewable energy

Both nations seek to reshape the future of energy in line with environmental goals

In a move that can deepen the energy alliance between the two nations, India and Saudi Arabia agreed to link their power grids using subsea cable after the recently held G20 Summit in the national capital. According to the MoU, the two nations will cooperate in the areas of renewable energy, energy efficiency, hydrogen, electricity and grid interconnections, petroleum, natural gas, strategic petroleum reserves, and energy security.

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Both countries are trying to make a huge shift towards renewable energy (RE) from traditional sources. Saudi Arabia aims to increase domestic RE capacity to 50% of total energy by 2030. India’s formal goal is to more than double its RE capacity of 175 GW in 2022 to 450 GW by 2030, according to a report in the Times of India.

Why is it important for India?

For a while, India has been looking at linking its power grid with Saudi Arabia and the UAE through subsea cables from its west coast and with the power grid of Singapore from the east coast. This sharing of power resources across regions will help countries reduce the need for costly renewable energy storage solutions and boost the reliability of their power grids. The move can also prove critical to India’s long-term economic and energy security goals. India is also pursuing the One Sun One World One Grid (OSOWOG) plan to connect countries through a global power grid. According to Mint, a task force set up by the power ministry has examined the feasibility of interconnecting the regional grids of Southeast Asia, South Asia, the Middle East, Africa, and Europe.

According to reports, this MoU is a significant step towards a strong energy partnership between the two nations. It is expected to support India’s transition to cleaner and more sustainable energy sources in accordance with global efforts to combat climate change. Both nations seek to reshape the future of energy in line with environmental goals.

“We are adding a new dimension to our ties in tune with changing times. For India, Saudi Arabia is one of our most important strategic partners,” Prime Minister Narendra Modi had said at the India-Saudi Arabia Strategic Partnership Council meeting.