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Source: This post is based on the article “Sunny Side Up”, published in The Times of India, on 13th Sep 2023.
Syllabus Topic: GS Paper 3 – Economy – Energy – renewable Energy
News: India and Saudi Arabia have signed a Memorandum of Understanding (MoU) to cooperate in the field of energy.
The focus of MoU is on renewable energy and the possibility of connecting national power grids through an undersea link.
What is the Significance of the MoU between India and Saudi Arabia?
First, both countries are aiming towards transition to renewable energy (RE). Saudi Arabia aims for 50% RE by 2030, while India aims to increase its RE capacity from 175 GW in 2022 to 450 GW by 2030. The MoU explores the idea of linking national grids to manage the surge in RE capacity.
Second, it also opens the possibility of international cooperation in energy storage technology.
What are the challenges?
First, Variations in power demand throughout the day and the generation of power is dependent upon the natural forces like sunlight. It makes it difficult to manage the grid. Which is also the reason behind India’s uneven state-wise RE development.
Second, Storage costs make RE less attractive financially.
