India’s Undersea Power Corridor: Exporting Solar Energy, Strengthening Global Grids, and Shaping a New Energy Future

India’s ₹90,000 Crore Bet on Undersea Power Lines: A Bold Step Toward Global Energy Leadership

In a landmark move that could reshape the contours of global energy cooperation, India has announced an ambitious ₹90,000 crore investment to lay undersea power transmission cables connecting its power grid with the United Arab Emirates (UAE) and Saudi Arabia. This isn’t just about cables running beneath the sea—it's about India positioning itself at the heart of a new international energy order.

The plan involves establishing high-capacity High Voltage Direct Current (HVDC) transmission lines under the Arabian Sea. These cables will enable cross-border power transfer between India and the Middle East, with a focus on exporting India’s burgeoning surplus of renewable energy, particularly solar and wind power. With the Power Grid Corporation of India Ltd. (PGCIL) taking the lead on execution, the project reflects a blend of technical prowess and geopolitical vision.

Why This Matters

For India, this development is not just another infrastructure project—it's a strategic leap. Over the past decade, India has emerged as a leader in renewable energy deployment. Yet, as solar capacity grows, so do operational challenges. One of the biggest hurdles has been the mismatch between peak solar generation (midday) and peak electricity demand (evening hours). With storage solutions still expensive at scale, exporting excess solar energy during the day to countries like the UAE and Saudi Arabia—where daytime demand peaks due to air-conditioning loads—can create a win-win situation.

Aligning with the International Solar Alliance (ISA)

This project is a natural extension of India's leadership in the International Solar Alliance (ISA)—a global initiative launched by India and France to promote solar energy across the tropics. One of ISA’s stated goals is to facilitate cross-border solar electricity trade and build a unified global solar market. By physically connecting India's solar grid to the Middle East, India is not only walking the talk but also providing a blueprint for future energy diplomacy.

This initiative also breathes life into the “One Sun, One World, One Grid” (OSOWOG) vision—an ISA-backed plan that envisions a globally interconnected solar power network. The undersea lines are, quite literally, the first steps toward wiring that dream into reality.

Economic and Strategic Impacts

Exporting renewable power opens up an entirely new revenue stream for India. It sends a strong signal to investors and developers that India is ready to play in the global energy export market—possibly becoming the “renewable powerhouse” of the Global South. Moreover, it deepens India’s energy diplomacy with Gulf countries, already key partners in oil and gas trade, by adding clean energy to the mix.

From the Middle East perspective, this connection provides access to clean power at scale—critical for nations like UAE and Saudi Arabia that are diversifying their energy mix and working toward net-zero commitments.

The Road to a Multinational Energy Exchange

What’s particularly exciting is how this move lays the groundwork for a multinational electricity market, potentially evolving into a pan-continental energy exchange. Imagine a future where countries across Asia, the Middle East, and even parts of Europe can trade electricity in real time through interconnected grids—balancing surpluses and deficits, stabilizing prices, and promoting renewables.

Such a platform would require not only physical infrastructure but also harmonized regulations, market rules, and settlement systems—an opportunity India could seize by leading on design and governance.

Solving the Midday Solar Glut

One of the most pressing challenges in India’s renewable energy landscape is the oversupply of solar power during peak generation hours, typically between 11 AM and 3 PM. This often results in electricity prices crashing to zero or even negative levels on energy exchanges, signaling wasted generation potential. By enabling real-time exports of this surplus solar energy to high-demand regions like the UAE and Saudi Arabia, the undersea transmission lines offer a valuable outlet for excess supply, stabilizing domestic market prices and improving overall grid efficiency. This not only supports better returns for solar generators but also enhances the economic viability of India's renewable ecosystem.

Final Thoughts

India’s ₹90,000 crore investment in undersea power transmission is more than a project—it's a strategic statement. It addresses a core challenge in renewable energy integration, strengthens ties with energy-hungry partners, supports climate goals, and offers a pathway to a future where energy is clean, tradable, and truly global.

As the cables stretch across the Arabian Sea, so too does India's ambition—to not just power its own growth, but to illuminate a shared energy future for the world.