Saudi Arabia and India are collaborating on electrical grid interconnection, fostering mutual cooperation and advancing regional energy integration for sustainable development – EQ

In Short : Saudi Arabia and India have joined hands to cooperate on electrical grid interconnection, signifying a significant step in regional energy collaboration. This partnership aims to enhance energy security, promote renewable energy integration, and foster economic cooperation between the two nations. By interconnecting their electrical grids, Saudi Arabia and India can exchange clean energy resources efficiently, optimize energy usage, and contribute to a more sustainable energy future for both countries. This collaboration underscores the importance of international cooperation in advancing clean energy initiatives on a global scale.

In Detail : Initial collaborative deal for renewables and supply chains was also signed

Saudi Arabia and India have signed an initial agreement to co-operate in the areas of electrical grid interconnection, green/clean hydrogen, and supply chains, Saudi state news agency SPA reported.

The agreement was signed by Prince Abdulaziz bin Salman, Saudi Arabia’s Minister of Energy, and Raj Kumar Singh, India’s Minister of Power and New and Renewable Energy, during the UN Mena Climate Week 2023 in Riyadh on Sunday.

The agreement aims to establish a general framework for co-operation between the parties in electrical interconnection and electricity exchange during peak times and emergencies, according to the SPA report.

Saudi Arabia and India signed a preliminary agreement on energy co-operation when Crown Prince Mohammed bin Salman visited New Delhi for the G20 Summit and state visit from September 9 to 11.

The countries will also co-operate in the production of green/clean hydrogen and renewable energy, and to establish secure and reliable supply chains of materials used in the hydrogen and renewable energy sectors, the report said.

“This would be in accordance with the countries’ respective capabilities, applicable laws, and regulations.”

Last month, Saudi Arabia and India signed more than 50 agreements covering sectors including information and communication technology, entrepreneurship, chemicals, energy and advanced manufacturing to strengthen their economic ties.

The agreements were signed during the India-Saudi Investment Forum in New Delhi on the sidelines of an official state visit by Prince Mohammed for the G20.

The Ministry of Investment of Saudi Arabia is also in the process of opening a country office in India to streamline the process for Indian companies to invest in the kingdom.

The two sides also agreed to set up a task force to help identify and channel investments worth $100 billion in the West Coast refinery project in India’s western state of Maharashtra.

New Delhi planned to set up the $50 billion mega refinery project with a capacity of 60 million tonnes a year, with co-operation between Saudi Aramco, Adnoc and companies in India.

The project was delayed by the coronavirus pandemic and concerns over the environmental effects of land acquisition for the initiative.

The preliminary agreement signed at the UN Mena Climate Week included co-operation in conducting studies for electrical grid interconnection; co-development of green/clean hydrogen and renewable energy projects; and collaborating with entities and companies specialised in electrical interconnection and green/clean hydrogen, SPA reported.

At the G20 meeting, the India-Middle East-Europe Economic Corridor was announced. It involves collaboration between the US, India, Saudi Arabia, the UAE, France, Germany, Italy, and the EU.

The agreement is hoped to boost regional investment.

India and Saudi Arabia are seeking to strengthen economic ties.

India is Saudi Arabia’s second-largest trading partner, amounting to 196.7 billion Saudi riyals ($52.45 billion) and recording an annual growth rate of 51 per cent.

Meanwhile, Saudi Arabia is India’s fourth-largest trading partner. There are more than 3,000 Indian companies with a foreign investment licence in Saudi Arabia, the kingdom’s Ministry of Investment said in September.

Trade between both countries reached an all-time high of $52.75 billion between 2022 and 2023.