India-UAE collaboration for fostering a fuel-efficient future
While countries sort to traverse amongst the complexities regarding renewable energies, India and UAE decided to strengthen their trade bonds with each other in the renewable energy sector which would benefit both countries. Recent reports state that the India-UAE collaboration can ignite India’s passion for becoming a universal photovoltaic (PV) manufacturing platform.
The report which was titled “Modern Energy: India-UAE Collaboration for a Sustainable Future” was published on the 6th of March,2024 at JW Marriott Juhu, Mumbai, and was jointly unveiled by The UAE-India Business Council (UIBC) and Nangia Andersen. The report highlights the India-UAE collaboration in the renewable energy sector as a step forward to creating a sustainable future as part of the United Nations Sustainable Development Goals.
What does the report talk about?
This report contains initiatives by India such as India’s National Solar Mission and the Green Energy Corridor project, demonstrating the nation’s vision and prowess in promoting the adoption of renewable energies. It also contains the UAE’s Energy Strategy 2050, a pivotal move in taking forward renewable energy adoption. Besides initiatives and projects, the report highlights the budding prospects for future collaborations, investment opportunities, technological advancements, innovative grid solutions, and amplifying fuel-efficient measures. It also suggests bilateral cooperation in hybrid renewable energy systems, exploring ocean and geothermal energy, and upskilling the workforce.
The India-UAE collaboration can facilitate the development of a green hydrogen trade corridor, subsequently positioning India as a leading producer and exporter of green hydrogen, while placing UAE as a leading distribution hub by deploying its present energy infrastructure and strategic location. As per recent research conducted by McKinsey, the universal valuation for green hydrogen will reach up to $700 billion by 2050, which is a brilliant opportunity for both countries.
Trade relations in the renewable energy sector domain have intensified between India and GCC nations over the past few years. In October 2021, the UAE had committed to allocate $75 billion in sovereign funds to India to promote clean energy. Following that, in January 2023, the two countries signed an MoU, aiming to work collectively on developing green hydrogen along with the installation of an undersea cable joining India and UAE as part of the ‘One Sun, One World, One Grid’ initiative. The UAE has also joined hands with India in developing solar power equipment. The report predicts a notable rise in cumulative renewable capacity from 9.24% to 15.06% Compound Annual Growth Rate (CAGR) between 2022 and 2028.
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As part of the Modern Energy: India-UAE Collaboration for a Sustainable Future, a part of the report suggests that the Public-Private Partnerships (PPPs) of the Indian construction firms and UAE sovereign wealth funds have the potential to gain monetary resources for clean-tech infrastructure initiatives in India. Major Gen. (Retd.) Sharafuddin Sharaf, who hails as the Chairman of UIBC said “We are delighted to present the report at a time when the UAE-India relationship is at its best, and both economies are being recognized as shining stars in the global arena.”, while highlighting the importance of the report in elevating renewable energy partnership between India and UAE. This association between the countries emerges as a testament to the changing energy scenario, positioning them at the forefront of the worldwide Renewable Energy Sector scenario.