Energy security is an important aspect of India–Saudi Arabia bilateral relations. Saudi Arabia is the third-largest source of crude oil and petroleum products imports into India. In recent years, the energy partnership has encompassed multi-dimensional cooperation on renewable energy.

Energy security is an important aspect of India–Saudi Arabia bilateral relations. The Kingdom of Saudi Arabia is ranked the third-largest importer of crude oil and petroleum products into India, while India is Saudi Arabia’s second-largest trading partner. However, in recent years, the India–Saudi Arabia energy partnership has been marked by a transformation from hydrocarbons trade to multi-dimensional cooperation on renewable energy. As carbon markets expand and climate consciousness gains global momentum, the evolving partnership between New Delhi and Riyadh in renewable energy has assumed heightened strategic importance.

Along with conventional energy trade, bilateral cooperation in the renewable energy sector encompasses investment flows and collaboration on technologies, infrastructure and research, aligning with the national energy strategic priorities and goals of both countries. The partnership through joint ventures and investments demonstrates strategic interdependence, as knowledge exchange and grid modernisation create a symbiotic ecosystem in which Saudi capital flows accelerate India’s clean energy capacity expansion. Indian technical proficiency de-risks and optimises Saudi Arabia’s renewable energy infrastructure buildout.

Both countries complement each other in terms of capabilities. With a rapidly growing energy market, India presents investment opportunities for Saudi Arabia to gain market access. Saudi Arabia gains leverage by investing in and collaborating with the Indian government and private companies across various platforms to diversify its economy and achieve market access objectives, thereby fulfilling clean energy goals. As India’s share of global energy consumption is expected to double by 2035, it plays a significant role in the global energy transition.[i]

The convergence of national priorities and ambitious targets presents opportunities for both countries to cooperate for mutual benefit. Large-scale renewable projects and joint ventures have been launched under the Saudi Vision 2030. Similarly, India launched the National Green Hydrogen Mission in 2023 to assume leadership in production, usage and export of green hydrogen. A key objective is to achieve 5 MMT (million metric tonnes) of green hydrogen production by 2030.[ii]

Saudi Arabia’s Push for Renewable Energy

Saudi Arabia, responsible for approximately 12 per cent of global oil supply, is shifting towards sustainable energy resources. The Kingdom aims to generate 50 per cent of its electricity from renewable sources by 2030.[iii] Saudi Arabia has a target of producing 4 million tonnes of green hydrogen per year and aims to become a global leader in hydrogen supply by 2050.[iv] Nevertheless, electricity generation currently depends primarily on fossil fuels, as indicated in Table 1.

Table 1. Saudi Arabia’s Electricity Generation Mix (2023–2024)

Sources: U.S. Energy Information Administration (EIA), Saudi Ministry of Energy, Power Library Analysis (2024).

In December 2025, Saudi Arabia sought to increase renewable energy capacity by connecting 12.3 Gigawatt (GW) of renewable energy to its national grid.[v] Saudi Arabia is investing actively in energy storage systems. For instance, the launch of the Bisha project in January 2025 has connected battery energy storage to the grid, expanding Riyadh’s renewable energy infrastructure. Saudi Arabia targets to bring 22 gigawatt-hours of energy storage projects by 2026.[vi]

To diversify revenue streams, Riyadh considers green hydrogen and ammonia exports as potential sources of revenue alongside crude oil exports. The hydrogen demand is expected to increase, replacing up to 37 per cent of global oil production by 2050, contributing to decarbonisation efforts in electricity generation.[vii] In furtherance of this, the NEOM Green Hydrogen Company (NGHC) project, to produce 600 tonnes of green hydrogen daily, exemplifies the adoption of carbon-free energy for renewable solutions. The project integrates 4 GW of solar and wind power to supply and produce green hydrogen.[viii] These targeted efforts to invest and develop policies to drive economic transformation reflect the Kingdom’s approach to position itself as a prominent global energy player.

India’s Shift towards Renewable Energy

India’s renewable energy strategy emphasises leveraging abundant solar irradiation, extensive coastline for offshore wind potential and improving technological capabilities to achieve cost-effective and competitive clean energy production. As the third-largest producer of solar power, India aims to achieve a target capacity of 500 GW of non-fossil-fuel electricity by 2030.[ix] Additionally, India’s energy consumption is expected to increase........

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