INDIA AND SINGAPORE AGREEMENT (Syllabus: GS Paper 3 - Energy)

Context:  India and Singapore have fast-tracked plans to connect their power grids through an undersea cable via Andaman & Nicobar, which will allow India to sell renewable energy to Singapore.

Key Points

• The landed cost of the renewable energy that will be exported through this arrangement to Singapore is projected to be cheaper than their gas-based electricity.
• Singapore also needs to fulfil its nationally determined contributions (NDC) to the Paris Agreement and taking renewable energy from India will help in achieving that target.
• The two countries held discussions on the matter on the sidelines of the G20 Energy Ministerial and Clean Energy Ministerial meetings earlier this month.
• Being isolated from the mainland, the Andaman & Nicobar Islands have unique challenges in terms of power supply. 
• The union territories cumulative generation capacity is around 109. 45 MW in various islands, of which, diesel-based generation is almost 91%, and the rest is hydro and solar.
• The arrangement with Singapore will benefit the islands’ connectivity as well, especially with renewable energy.
• India has also been in talks with Saudi Arabia and the UAE to connect with their power grids to trade renewable energy. 
• This proposal has been in the works along with Oman, where India could look to make a stop, before taking the connectivity further to the UAE and Saudi Arabia.