Tdafoq Energy, based in Riyadh, will distribute Delectrik Systems’ vanadium battery solutions in the GCC countries and establish a manufacturing plant in Saudi Arabia. The new plant will be expanded to a GWh capacity by 2025, according to the deal.
The project aims to promote Saudi Arabia’s economic diversification goals, which include reducing dependency on oil and modernizing the economy. By 2030, the monarchy hopes to generate half of its energy from renewable sources.
Following the agreement, Saudi Crown Prince Mohammed bin Salman visited New Delhi to help strengthen energy connections between the two economies ahead of India’s G20 presidency. Although India and Saudi Arabia have been excellent energy trade partners, the drive for a green economy demands increased collaboration.
Global energy consumption increased by 2.3 percent in 2018, roughly double the growth rate seen since 2010. If we continue to burn carbon fuels at the current rate, it is anticipated that all of our fossil fuel reserves will be gone by 2060.
In this context, the problem of bilateral agreements becomes vitally crucial. Saudi Arabia is a major energy supplier, and India is a major consumer, therefore these two countries might serve as models for a gradual transition to more sustainable power use and production.
While India is working to develop alternative energy sources, particularly wind power and solar energy, there is plenty of room for collaboration between the two governments.
With an established capacity of over 250 million tonnes per year, India is an important Asian refining center. As a major consumer of Saudi oil, it has a long history of economic and energy partnerships with the Kingdom.
Saudi Arabia is likewise seeking for new avenues to strengthen its relationship with India. By 2030, the country intends to generate 50% of its electricity from renewable sources. Riyadh committed last year to reach zero net emissions by 2060, prompting environmental activists to be skeptical.
Saudi officials recently discussed a proposed formal agreement with India to collaborate in the energy sector, signaling growing bilateral involvement. It demonstrates Riyadh’s determination to capitalize on India’s potential.
