India and Saudi Arabia are collaborating on a joint initiative that will showcase the strength and significance of their relationship. The two nations will link their power grids via undersea cables traversing the Arabian Sea. Undersea cables facilitate the interconnection of power grids across various locations, promoting the exchange of electricity resources and the balancing of supply and demand.
In 2023, both nations signed a memorandum of understanding to create a broad framework for collaboration in electrical interconnection; sharing electricity during peak periods and emergencies; joint project development; co-production of green/clean hydrogen and renewable energy; as well as establishing secure, dependable, and resilient supply chains for materials utilized in green/clean hydrogen and the renewable energy sector.
The initiative could transform India's role from a net importer of Saudi oil and cooking gas (LPG) to an energy exporter with renewable energy and hydrogen sales. Saudi Arabia is the third biggest supplier of oil for India and the top provider of LPG.
This will signify the initial offshore connection in Prime Minister Modi's 'One Sun, One World, One Grid' (OSOWOG) concept of a worldwide grid focused mainly on renewable energy.
Introduced by Prime Minister Narendra Modi in 2018 at the inaugural Assembly of the International Solar Alliance (ISA), OSOWOG aspires to create a worldwide interconnected grid designed for transferring renewable energy between nations to realize energy sustainability.
The expansion of the cross-border grid seeks to incorporate renewable resources like solar, wind, and hydro, which differ by region. By distributing these resources through interconnected grids, countries can more effectively handle supply and demand surges, enhancing grid stability and decreasing dependence on fossil fuels. India presently shares approximately 4,100 MW of electricity with its neighboring nations, such as Nepal, Bangladesh, Bhutan, and Myanmar.