Nearly a month after signing the energy cooperation pact about power grid interconnectivity, India and Saudi Arabia signed a memorandum of understanding (MoU) for green hydrogen supply chain and power grid interconnection on Sunday.
The MoU was signed by the Union Minister for Power and New & Renewable Energy, R K Singh, and the Minister of Energy, Government of Saudi Arabia, Abdulaziz bin Salman Al-Saud on the sidelines of the MENA Climate Week in Riyadh.
In its official statement, the Ministry of Power stated, “This memorandum of understanding aims to establish a general framework for cooperation between the two countries in the field of electrical interconnection; exchange of electricity during peak times and emergencies; co-development of projects; co-production of green/clean hydrogen and renewable energy; and also establishing secure, reliable and resilient supply chains of materials used in green/clean hydrogen and the renewable energy sector,” said a statement from the minisry of power.
The MoU included collaboration in conducting the necessary studies and coordinating with relevant authorities and companies.
Singh, who is participating in the Middle East and North Africa (MENA) Climate Week 2023, urged the MENA countries to join the Global Biofuel Alliance to bolster international cooperation in sustainable biofuels and fully harness the potential of the Alliance.
In September, the two countries reached an agreement on energy cooperation when Mohammed bin Salman was in New Delhi for the G20 Summit and state visit. The deal focuses on collaboration in efficiency, renewables, green hydrogen, and green ammonia, and grid interconnection between the two countries.
Under the pact, the western coast of the Indian subcontinent will be connected with the eastern coast of Saudi Arabia through subsea cables, bridging the Middle East and South Asia grids. By sharing power resources across regions, countries can reduce the need for costly renewable energy storge solutions and improve the reliability of their power grids.
India’s pursuit of grid interconnectivity could also prove critical to its long-term economic and energy security goals. India is pursuing the One Sun One World One Grid (OSOWOG) plan, which aims to connect countries through a global power grid. Additionally, India is currently in talks with countries like Singapore and Thailand to establish similar underwater and land-based connections, potentially extending this network to Southeast Asia.
According to the statement, the two energy ministers agreed that regular B2B contacts and B2B business summits would be held to create entire supply and value chains in the aforementioned areas of energy sector collaboration.
Earlier, an Indian delegation led by the power minister participated in the high-level segment of the Middle East and North Africa (MENA) Climate Week 2023, which is being held in Riyadh, Saudi Arabia, from October 8 to 12, 2023.
“India having almost 17% of theworld population and being the world’s fifth largest economy, is taking significant steps to reduce emission intensity of its GDP by 45% by the year 2030 and to achieve the goal of Net Zero by the year 2070,” he said.
India and Saudi Arabia are shifting from fossil fuels, aiming to have 50 percent of installed renewable energy by 2030.
