India and Saudi Arabia have taken a significant step towards energy cooperation by signing a memorandum of understanding (MoU) for green hydrogen supply chain and power grid interconnection. The MoU was formalized in Riyadh, Saudi Arabia, during the MENA Climate Week 2023, with Indian Union Minister for Power and New & Renewable Energy, RK Singh, and Saudi Minister of Energy, Abdulaziz bin Salman Al-Saud, present at the signing.
The key objectives of the MoU include:
- Establishing a framework for cooperation in the field of electrical interconnection.
- Facilitating the exchange of electricity during peak periods and emergencies.
- Collaborating on the development of energy projects.
- Co-producing green/clean hydrogen and renewable energy.
- Establishing secure, reliable, and resilient supply chains for materials used in the green/clean hydrogen and renewable energy sectors.
This MoU follows the energy cooperation agreement signed between the two countries approximately a month ago. The earlier agreement covered areas such as renewable energy, energy efficiency, grid interconnection, strategic petroleum reserves, and energy security.
India has been exploring the possibility of linking its national power grids with those of Saudi Arabia and the United Arab Emirates (UAE) through subsea cables, with a particular focus on the west coast. Grid interconnectivity allows countries to share power resources, reducing the need for expensive renewable energy storage solutions and enhancing grid reliability. This initiative aligns with India’s ambitious One Sun One World One Grid (OSOWOG) plan, which seeks to connect countries through a global power grid.
The MoU also outlines plans for Business-to-Business (B2B) Business Summits and regular B2B interactions between India and Saudi Arabia to establish complete supply and value chains in the energy sector.
RK Singh, the Indian Minister for Power and New & Renewable Energy, emphasized India’s commitment to addressing climate change and its leadership in the global energy transition. He highlighted India’s goal of reducing the emission intensity of its GDP by 45% by 2030 and achieving net-zero emissions by 2070.
Furthermore, Singh encouraged Middle East and North African (MENA) countries to join the recently launched Global Biofuels Alliance. This alliance aims to advance international cooperation in sustainable biofuels and was launched during the G20 Summit in New Delhi. It currently has the support of 19 countries and 12 international organizations, including India, Brazil, and the United States.
While India and several other countries have embraced this initiative, Saudi Arabia, a major oil-producing nation in the Middle East, has not joined the Global Biofuels Alliance.
