India Weighs ₹40,000-Crore Undersea Power Link to UAE to Boost Regional Energy Connectivity

India is evaluating the feasibility of building a 1,600-kilometre undersea electricity transmission cable connecting the country with the United Arab Emirates (UAE), a project estimated to cost around ₹40,000 crore. The proposal forms part of India’s long-term strategy to strengthen cross-border energy connectivity and expand clean power trade.

Speaking at the India Energy Storage Week on Wednesday, Union Power Minister Manohar Lal Khattar said the proposed link aligns with the government’s “One Sun, One World, One Grid” initiative, which envisions an interconnected global electricity network powered by renewable energy.

Khattar said India is simultaneously advancing electricity connectivity projects with Sri Lanka and Singapore. According to him, the broader objective is to establish an east-to-west power corridor that could eventually extend beyond Southeast Asia and facilitate electricity exchange with Europe.

The minister also stressed the growing need for energy storage as renewable power generation increases. He noted that surplus electricity produced during periods of high solar generation must be stored efficiently and supplied during peak demand hours when renewable output declines.

Emphasising India’s climate commitments, Khattar said expanding green energy infrastructure is essential for reducing carbon emissions and achieving the country’s Nationally Determined Contribution (NDC) targets and long-term net-zero goals.

He added that electricity demand is expected to grow rapidly in the coming years, driven by the expansion of data centres, artificial intelligence applications and electric vehicle adoption. Peak power demand, which has already reached around 271 GW, could approach 300 GW next year, making additional investments in power generation, transmission networks and energy storage increasingly important.

Khattar also underscored the importance of strengthening domestic energy capabilities, saying India should aim to develop the capacity to produce all critical utilities within the country to enhance energy security. He noted that the government has already introduced several policy measures for the power sector and remains open to further reforms based on industry feedback.

The minister highlighted key initiatives designed to accelerate renewable energy deployment, including the waiver of inter-state transmission system (ISTS) charges, implementation of the Green Energy Open Access Rules, and the introduction of time-of-day electricity tariffs. He said these measures are expected to improve market access for renewable energy developers while supporting the country’s clean energy transition.