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NEW DELHI: India and Saudi Arabia have completed a detailed feasibility study for a proposed 2,100-kilometre undersea electricity transmission link estimated to cost around $9 billion.
The project, which would carry 3 gigawatts of power through high-voltage direct current (HVDC) technology, is scheduled for discussion at a meeting of the Joint Working Group on Energy on October 5, according to an exclusive report by Moneycontrol.
The study, conducted by India over the past year, marks one of the most advanced cross-border power interconnection initiatives involving the country. Officials described it as strategically significant for enabling electricity trade, enhancing energy security and supporting the integration of renewable energy between the two nations.
Project Contours and Cost Escalation
According to senior government officials, the feasibility assessment has fixed the latest parameters at approximately 2,100 km in length, 3 GW HVDC capacity and a cost of roughly $9 billion. This represents a substantial increase from the earlier estimate of about $5 billion when the concept was first discussed.
The October 5 meeting of the Joint Working Group on Energy, one of the official-level groups under the Economic and Investment pillar of the India-Saudi Strategic Partnership Council is expected to examine the project’s economic viability and explore ways to reduce costs.
Participants will include representatives from Central Transmission Utility of India Ltd (CTUIL), the Central Electricity Authority (CEA), the power ministries of both countries and Saudi Arabia’s National Electricity Transmission Company.
Alignment with One Sun One World One Grid
The proposed undersea cable forms part of India’s broader One Sun One World One Grid (OSOWOG) vision, which seeks to interconnect regional electricity grids to facilitate cross-border trade in renewable power.
India is also exploring similar interconnections with the UAE, Oman, Singapore, Sri Lanka and the Maldives. However, the India-Saudi project is the first among these to have advanced to a completed detailed feasibility study stage.
Background of Bilateral Energy Cooperation
Cooperation on electricity and grid interconnection began with a broad energy agreement signed on 10 September 2023, followed by a specific memorandum of understanding on electrical interconnections on 8 October 2023. In October 2024, CTUIL and Saudi Arabia’s National Electricity Transmission Company formalised an agreement to undertake the feasibility study. CTUIL issued a tender for the detailed undersea-cable assessment in 2025, leading to the study now being presented.
The development comes shortly after India and Saudi Arabia concluded negotiations on their Bilateral Investment Treaty on 29 September, aimed at creating a more predictable framework for investments.
If realised, the undersea link would establish a direct electricity interconnection between India and Saudi Arabia, allowing bidirectional power flows. This could help both countries balance renewable energy generation, improve grid stability and reduce reliance on fossil-fuel-based peaking power.
For India, it represents a concrete step towards realising the OSOWOG vision of a transnational green energy grid. For Saudi Arabia, it offers an additional avenue to monetise surplus renewable capacity as the Kingdom accelerates its energy transition.
Officials emphasised that establishing a viable business case remains the immediate priority. The October 5 discussions will be critical in determining whether the project moves forward to the next stage of planning and investment decisions.
The completion of the feasibility study signals growing maturity in India-Saudi energy ties beyond traditional oil trade, positioning both countries as potential partners in large-scale, cross-border clean energy infrastructure.
(This report is based on an exclusive report by Moneycontrol.)
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