India and Saudi Arabia have signed a Memorandum of Understanding (MoU) in electrical interconnections, green/clean hydrogen and supply chains. While regular B2B meetings will be held to set up a complete supply value chain in areas of cooperation, India's Power Ministry has said that the MoU aims to establish a general framework for cooperation between India and Saudi Arabia in electrical interconnections.

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Along with the co-production of green/clean hydrogen and renewable energy, the agreement will enable the exchange of electricity during peak times and emergencies and intends to establish resilient supply chains of materials used in the renewable energy sector.

The MoU was signed between the visiting Union Minister for Power and New & Renewable Energy RK Singh and Minister of Energy, Government of Saudi Arabia, Abdulaziz bin Salman Al-Saud on the sidelines of the Middle East and North Africa (MENA) Climate Week in Riyadh. The MENA Climate Week 2023 is being held in Riyadh, Saudi Arabia, from October 8-12.

Speaking at a session during the MENA Climate Week, Singh urged participating countries to join the biofuel alliance and Lifestyle for Environment (LiFE) to support energy transition.

The following is the text of the MoU:

The Government of the Kingdom of Saudi Arabia, represented by the Ministry of Energy, and the Government of the Republic of India represented by the Ministry of Power (hereinafter referred to as the “Parties”) based on friendship bonds between the two countries and their desire to strengthen cooperation between them in the field of electrical interconnection, green/clean hydrogen and supply chains.

Have reached the following understanding:

Article 1

Purpose

This Memorandum of Understanding (MoU) aims to establish a general framework for cooperation between the Parties in the field of electrical interconnection, exchange of electricity during peak times and emergencies, co-development of projects and co-production of green/ clean hydrogen and renewable energy in both countries and establishing secure, reliable and resilient supply chains of materials used in green/ clean hydrogen and the renewable energy sector, in accordance with their capabilities, the applicable laws and regulations of their respective countries and based on the principles of equality, mutual benefit and respect.

Article 2

Areas of Cooperation

The Parties shall enhance cooperation in the field of electricity, Green/ Clean hydrogen and supply chains, particularly on:

1. Conducting necessary feasibility studies (technical, economic and environmental) for the purpose of electrical interconnection between the two countries and co-development of projects and co-production of Green/ Clean hydrogen and renewable energy in both countries.

2. Formulating a timetable for implementation in stages, in accordance with the outcomes of the study.

3. Collaborating with organizations/ companies that are specialized in the field of electrical interconnection and Green/clean Hydrogen.

4. Establishing electrical interconnection(s) and a joint mechanism for co-development of projects and co-production of Green/Clean hydrogen and renewable energy between the two countries based on (1) to (3) above.

5. Establishing secure, reliable and resilient supply chains of materials used in green/ clean hydrogen and the renewable energy sector.

6. Any other areas of cooperation, related to the electrical interconnection, Green/ Clean hydrogen and supply chains that the Parties may agree upon mutually.

Article 3

Implementation Mechanism

The Parties shall form a Joint Working Group (JWG) co-chaired by the Parties (represented by a Joint Secretary from the Ministry of Power of the Government of the Republic of India and a Deputy Minister/Assistant Deputy Minister from the Ministry of Energy of the Government of the Kingdom of Saudi Arabia) and consisting of other members from both Parties; to be responsible for implementing the areas of cooperation mentioned in article 2 of this MoU. The JWG shall work on the necessary procedures and measures that need to be taken to strengthen and develop the cooperation of this MoU and to supervise and pursue implementing the areas of cooperation mentioned in Article 2, between the two countries, in preparation for its tendering, awarding and implementation by specialized companies.

Further, a Joint Steering Committee (JSC) co-chaired by the Parties (represented by a Secretary from the Ministry of Power of the Government of the Republic of India and a Vice/Assistant Minister from the Ministry of Energy of the Government of the Kingdom of Saudi Arabia) and consisting of other members from both Parties shall also be constituted to review the progress made by the Joint Working Group.

The JWG/ JSC shall meet at least once every year in virtual or physical mode as per convenience of both Parties.

The parties may conclude programmes within the framework of this MoU, specifying the activities they agree upon, the method of participation for each Party, the provisions and periods related thereto, the financial aspects, and any other arrangement that may be necessary.

The Parties shall form any other kind of arrangements that may be necessary.

Article 4

Confidentiality

The Parties shall keep confidential the information and contents exchanged between the Parties in relation to this MoU and shall not without the prior written consent of the other party use any of these confidential information and contents for any purpose other than for the purpose of which such confidential information and contents have been given. The commitment of this Article shall remain in force even after the expiration of this MoU.

Article 5

Financial Responsibility

Each Party shall bear its own financial costs arising from the implementation of this MoU unless the Parties agree otherwise through mutual consultations.

Article 6

Intellectual Property

The Parties shall take the necessary measures to protect the intellectual property rights resulting from any activity in the framework of this MoU, in light of the applicable laws and regulations in force in their respective countries and international agreements that both Parties are a party to.

Article 7

Dispute Resolution

Any dispute arising out of the interpretation or application of this MoU shall be resolved by amicable negotiation between the Parties.

Article 8

Legal Affect

While this MoU constitutes an expression of the Parties' good faith and intent to engage in the cooperation described herein, this MoU does not create any legal rights and obligations that are binding to the Parties and shall not affect the Parties’ obligations rights and privileges derived from any international treaties or agreements to which either or both Parties are a party to.

Article 9

Commencement and Discontinuation

(1) This MoU shall be effective as of the date of the last mutual notice between the Parties–through the diplomatic channels– confirming the completion of the internal regulatory procedures necessary for its entry into force.

(2) This MoU shall remain in effect for five years. It shall be automatically renewed for a similar period or periods unless either Party informs the other Party in writing –through the diplomatic channels– of their desire to terminate or not renew this MoU, and such notices may be given at least three months prior to the date specified for its termination or expiration.

(3) This MoU may be amended by a written agreement of the Parties. Such amendments shall enter into force in accordance with the procedures referred to in Paragraph (1) of this Article.

(4) In the event that this MoU is terminated or not renewed, its provisions shall remain in effect with regard to the programs and activities under which they arose and have not been completed unless the Parties agree otherwise.

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(Edited by : Amrita)

First Published:Oct 8, 2023 9:57 PM IST