India is preparing to take a major step in energy cooperation by working with Saudi Arabia and the United Arab Emirates (UAE) on a new cross-border electricity exchange project. The plan involves laying undersea power cables that will allow the three countries to trade electricity directly. A senior official from the Ministry of Power said India will soon invite tenders for the project and may also supply electricity to the Gulf nations when needed.
The project comes as Saudi Arabia and the UAE are actively working to reduce their dependence on fossil fuels and expand the use of renewable energy. The undersea cables will use high-voltage direct current (HVDC) technology, which allows electricity to be transmitted over long distances with minimal loss. Once completed, the initiative could become the world’s first international energy exchange of its kind.
At present, India imports large amounts of crude oil from Saudi Arabia and the UAE. However, with India’s growing capacity in solar and wind power, the Gulf countries are now exploring opportunities to import clean energy from India. The project will allow power to be shared based on demand, using time zone differences to balance supply.
The energy exchange is expected to provide economic and environmental benefits and strengthen strategic ties between the three countries, while supporting global efforts to reduce carbon emissions.
