India and Singapore In Talks To Link Grid To Facilitate Renewable Energy Trade

India and Singapore to join their power systems via an undersea cable via the Andaman & Nicobar Islands have been expedited. This will enable India to sell renewable energy to Singapore. A contract is anticipated to be signed soon.

An economic justification for the investment was provided by one of the sources: "The landed cost of the renewable energy that will be exported to Singapore through this arrangement is projected to be less expensive than their gas-based electricity." As part of the Paris Agreement, Singapore also needs to achieve its nationally determined contributions (NDC), and importing renewable energy from India will help it do so.

This month's G20 Energy and Clean Energy Ministerial meetings saw negotiations on the topic between the two nations, according to sources. Singapore is enthusiastic about the concept, they claimed, but a thorough investigation will be prepared to determine its continuing viability.

Power Grid Corporation of India Ltd, a state-owned company, is conducting additional research on the project's technical aspects. Singapore had previously stated that it would investigate a number of solutions, including regional power grids, since the country's ability to expand renewable energy is constrained by land scarcity and solar energy that is erratic.

The Andaman and Nicobar Islands face particular difficulties with regard to power supply due to their isolation from the mainland. The total installed generation capacity for the union territory is around 109.45 MW, of which diesel-based generation accounts for nearly 91% and the remaining energy comes from solar and hydropower.

The agreement with Singapore would improve communication across the islands, particularly for renewable energy. India has also discussed connecting to Saudi Arabia's and the UAE's power systems to trade renewable energy. This idea has been considered, along with Oman, where India may aim to stop before continuing the connectivity to the United Arab Emirates and Saudi Arabia.