Union Minister for Power & New and Renewable Energy, RK Singh, hailed a recent Memorandum of Understanding (MoU) signed with Saudi Arabia's energy minister as a pivotal moment in the realm of green energy. This landmark agreement focuses on cooperation in Green Hydrogen & Ammonia and is poised to bring about significant advantages for both nations.

Highlighting India's status as the most appealing destination for renewable energy investments, as per a Bloomberg report, Minister Singh told emphasised the mutually beneficial aspects of the accord.

He told CNBC-TV18 that capacities will be set up in both the nations under the mutually beneficial agreement. He said that while Saudi Arabia can benefit from India's huge & fastest growing renewable energy ecosystem and large developers; India can benefit from cheaper investment and more finance from Saudi Arabia.

Singh also noted that one of the Indian companies have already established a 1,500 MW solar capacity in Saudi Arabia, underscoring the potential for the Indian industry to expand its capacities further. The Minister described Saudi's resources of land and longer hours of sunlight as a good prospect for the Indian industry to set up capacities.

Moreover, the MoU outlines plans for grid interconnections, with India already engaged in discussions with Singapore to connect to the ASEAN grid. Singh mentioned that India's agreements with the UAE and Saudi Arabia would facilitate the global exchange of power by extending the Indian grid's reach to the Middle East, Europe, and South East Asia as part of the "one sun, one earth, one grid" initiative.

While undersea cables require substantial financing, he said that many Middle Eastern developers have expressed interest, and feasibility studies will be conducted to ensure affordable transmission costs.

While India foresees traffic between both the regions to be substantial, it also looks to avert the need for expensive solar power storage at Rs. 10/kWh by ensuring that the grid connectivity will allow for lower cost of power transmission.

In addition to its agreements with Saudi Arabia and the UAE, India is actively pursuing discussions with Japan and several other countries to further its commitment to renewable energy. Draft agreements are currently under consideration in these ongoing talks, the Minister said.

The MoU between the India and Saudi Arabia was signed in New Delhi on September 10, 2023, by Union Minister for New & Renewable Energy and Power, R. K. Singh and Minister of Energy for the Kingdom of Saudi Arabia, Abdulaziz bin Salman Al-Saud.

"The MoU will develop a stronger partnership between India and Saudi Arabia in the field of energy. The MoU will support India’s efforts for energy transition and transformation of global energy system towards combating climate change." said the Ministry of New and Renewable Energy.

(Edited by : Anushka Sharma)