India and Saudi Arabia will collaborate in areas of electrical interconnections, green hydrogen, and supply chains. A Memorandum of Understanding (MoU) to this effect was signed between the two nations on October 8 in Riyadh, on the sidelines of the Middle-East and North Africa (MENA) Climate Week 2023. Green hydrogen is crucial in accelerating India’s energy transition.
The pact, inked by India’s Union Minister for Power and New & Renewable Energy R K Singh and Minister of Energy, Government of Saudi Arabia, Abdulaziz bin Salman Al-Saud, aims at establishing a general framework for cooperation between India and Saudi Arabia in the field of electrical interconnection and exchange of electricity during peak times and emergencies, development of projects and production of green/clean hydrogen.

In addition to B2B business summits and regular B2B interactions to establish supply and value chains, the MoU is expected to facilitate cooperation in development and deployment of sustainable biofuels for trade.

The pact comes a month after both countries signed an energy cooperation pact which envisions cooperation in renewable energy, energy efficiency, grid interconnection, strategic petroleum reserves and energy security among others.

It is also in line with India’s larger One Sun One World One Grid (OSOWOG) plan which aims to connect countries through a global power grid. The possibility of linking its power grid with Saudi Arabia and the UAE through subsea cables from the west coast and Singapore from the east coast is already being looked into. Sharing power resources across regions will reduce the need for renewable energy storage solutions and improve reliability of their power grids. Grid interconnectivity is also critical to India’s long-term economic and energy security goals.

According to Singh, India has emerged as a leader in energy transition. “India with almost 17 per cent of the world population and the world’s fifth largest economy, is taking significant steps to reduce emission intensity of its GDP by 45 per cent by the year 2030 and to achieve the goal of Net Zero by the year 2070,” he added.

Singh called upon the MENA region to join India’s initiative on Lifestyle for Environment (LiFE). The Minister reiterated India’s stance that nations must recognise the challenges and opportunities in energy transition for developing countries and the global south in particular.