India And Singapore In Talks To Link Grid To Facilitate Renewable Energy Trade: Report

India and Singapore are reportedly expediting plans to connect their power grids through an undersea cable via Andaman & Nicobar Islands.

This grid connectivity will enable India to sell renewable energy to Singapore and an agreement on the same is expected to be signed soon, Economic Times reported citing sources.

"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," one of the sources was quoted as saying by ET.

The renewable power sharing agreement with India will also further Singapore's efforts to meet its commitments under the Paris Agreement.

The matter was discussed between the two countries during the G20 Energy Ministerial and Clean Energy Ministerial meetings earlier this month, according to sources cited by ET.

The sources added that a detailed study will be prepared on further feasibility, but Singapore is highly interested in the plan.

Further technical studies for the project are being carried out by the state-owned Power Grid Corporation of India Ltd.

Due to land scarcity and intermittent solar power, Singapore is exploring various options, including regional power grids, to expand its renewable energy sources.

Being geographically isolated, the Andaman and Nicobar Islands face unique challenges when it comes to power supply.

Currently, the islands have a cumulative generation capacity of approximately 109.45 MW, with diesel-based generation accounting for almost 91 per cent of this capacity. The remaining generation comes from hydro and solar sources.

The arrangement with Singapore will benefit the islands' connectivity as well, especially with renewable energy.

In addition to the collaboration with Singapore, India is actively engaged in discussions with Saudi Arabia and the UAE to establish connections with their power grids for the purpose of trading renewable energy.

The proposal also includes the possibility of connecting with Oman as a stopover before extending the connectivity to the UAE and Saudi Arabia.