Saudi Arabia and India have entered into a memorandum of understanding (MoU) aimed at strengthening cooperation in the field of renewable energy. The MoU, signed during the Middle East and North Africa Climate Week in Riyadh, solidifies the commitment of both nations to advance clean energy initiatives.
Saudi Energy Minister Prince Abdulaziz bin Salman and India's Minister of Electricity, New and Renewable Energy, Raj Kumar Singh, put their signatures on the agreement. The overarching objective of this MoU is to establish a comprehensive framework for collaboration between the two countries in several critical areas.
Key aspects of the MoU include provisions for electrical interconnection, the exchange of electricity during peak demand periods and emergencies, and the joint development and production of clean hydrogen and renewable energy projects in both Saudi Arabia and India. The agreement also aims to create secure, reliable, and adaptable supply chains for materials essential to green hydrogen and the renewable energy sector, aligning with each nation's capabilities and regulatory frameworks.
Additionally, the MoU outlines plans for conducting necessary studies and coordinating efforts with relevant authorities and companies. This agreement builds on the energy cooperation pact reached in September between the two countries when Crown Prince Mohammed bin Salman visited New Delhi for the G20 Summit and a state visit.
The earlier agreement encompassed various facets of collaboration, including efficiency improvements, renewable energy initiatives, green hydrogen and green ammonia production, and the interconnection of grids between Saudi Arabia and India. A notable feature of this collaboration is the deployment of subsea cables that will connect the eastern coast of Saudi Arabia with the western coast of the Indian subcontinent, effectively bridging the grids of the Middle East and South Asia.
India is also actively engaged in discussions with countries like Singapore and Thailand to establish similar underwater and land-based connections, with the potential to extend this network to Southeast Asia. The overarching goal of this ambitious plan is to facilitate the flow of renewable energy between regions, reducing reliance on costly energy storage facilities.
Raj Kumar Singh, India's Minister of Electricity, New and Renewable Energy, lauded the grid interconnection agreement as a “game changer” that would significantly lower electricity costs across the entire region. He highlighted the continuous availability of renewable energy resources due to the differing time zones of the two countries, emphasizing the potential for accelerated energy transition.
Singh also noted that grid interconnection would serve as a safeguard against energy crises, replacing the need for gas pipelines with an electricity pipeline. He envisions a future where individuals in different time zones can specify their renewable energy preferences and purchase energy accordingly on a transparent exchange.
Both Saudi Arabia and India are steadfastly transitioning away from fossil fuels, with the shared aim of achieving 50 percent of installed renewable energy capacity by 2030.
