India, which has been struggling with power shortages in recent years, has now decided to "export electricity." The destination is not neighboring Nepal or Bangladesh, but the two Middle Eastern big spenders, Saudi Arabia and the UAE.

According to the Economic Times of India (ET), citing remarks from Indian Power Minister Hardeep Singh Puri on June 10, the Indian government has signed agreements with Saudi Arabia and the UAE to export approximately 2 million kilowatts of electricity to each country through submarine cables.

This is not an ordinary "door-to-door power supply," but rather a high-cost energy cross-border project developed by India. The 1,700-kilometer-long submarine cable connecting Saudi Arabia will cost 4.7 trillion rupees. The 1,400-kilometer submarine cable connecting the UAE will also cost 4.35 trillion rupees. The total investment for both projects exceeds 9 trillion rupees.

Indian Power Minister Hardeep Singh Puri (right) - Indian Economic Times

Saudi Arabia and the UAE, as traditional fossil fuel exporters, heavily rely on thermal power for their domestic electricity needs, especially during summer when air conditioners are running at full capacity. They still need stable clean energy supplements. Meanwhile, India's solar and wind power have developed rapidly in recent years, with excellent lighting conditions and cheap electricity, making the Middle East willing to pay for it.

In introducing the achievements of his department over the past 11 years, Minister Puri mentioned that to support the development of clean energy, the Indian government has extended the policy of fee reductions for the Inter-State Transmission System (ISTS) until June 30, 2028. This policy will benefit pumped storage projects and battery storage systems approved or put into operation before this date, helping to further promote the construction of green energy infrastructure.

India may actually not be "bluffing." According to data released by the Indian Ministry of Power, in 2024, India added 34 million kilowatts of new installed capacity, setting a historical record, of which renewable energy contributed 29.5 million kilowatts, accounting for more than 85%. So far, the total installed capacity has risen to 470 million kilowatts, almost doubling compared to 250 million kilowatts in 2014.

Moreover, on June 9th itself, India's power grid withstood a historical peak load of 240 million kilowatts without any shortage of power supply. As a result, the Indian authorities proudly declared to the outside world: "India has successfully responded to the growing demand for electricity."

However, the hardest part of selling electricity is not building cables or power plants, but land acquisition.

The biggest pain point in India's transmission system has always been the issue of "right-of-way," severely hindering the construction of power projects in backward areas. Every piece of land and every state involved in laying the wires requires negotiation and compensation, and any delay could lead to project stagnation.

To address this problem, the Indian government has decided to increase the compensation standard for tower base land from 85% of the original land value to 200%, and the compensation for line passage parts from 15% to 30%, directly linking them to local market land prices.

If Modi wants to make this "power export" action happen, he must ensure that the land acquisition issues on the ground are resolved. Is this strategic foresight or blind adventurism? We'll probably know the answer when the 1,700-kilometer cable is really energized one day.

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original Source: https://www.toutiao.com/article/7514935252666647078/

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