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.