India, Denmark to partner in the power sector

A Memorandum of Understanding on Indo-Denmark Energy Cooperation was signed between the Indian Ministry of Power and Denmark’s Ministry for Energy, Utilities, and Climate on June 5

June 6, 2020

The power partnership provides for collaboration in offshore wind, long term energy planning, grid flexibility, and consolidation of grid codes to integrate variable generation options.

India, with an installed capacity of over 370 GW, is the third-largest power producer in the world. The output capacity is the world’s fifth-biggest while consumption is third-highest.

The current disruptions in the power sector have sought to raise capacity, improve transmission, expand distribution while cutting operations costs and emissions at the same time.

The MoU comes amid a steady rise in bilateral trade to US$1.3 billion in 2018-19. Meanwhile, investment from Denmark has been reported at over US$610 million since 2000.

A Memorandum of Understanding on Indo-Denmark Energy Cooperation was signed between the Indian Ministry of Power and Denmark’s Ministry for Energy, Utilities, and Climate on June 5. The partnership provides for collaboration in offshore wind, long term energy planning, forecasting, grid flexibility, and consolidation of grid codes to integrate and operate efficiently variable generation options. It will also seek flexibility in power purchase agreements, incentivize power plant adaptability, while driving variability in renewable energy production, etc. The Indian electricity market is expected to benefit from cooperation with Denmark in these areas.

India, with an installed power capacity of over 370 GW, is the third-largest power producer in the world. The nation’s output capacity is the world’s fifth-biggest while consumption is third-highest globally. This has called for necessary upgradation in the power sector to keep up with the demands of a fast-growing economy. The disruptions in the power sector have sought to raise capacity, improve transmission, expand distribution while cutting costs and emissions at the same time. India is currently pushing ahead to add new capacity of 100 GW over 2017–22. The nation is also in the process of adding 175 GW of renewable energy capacity by 2022. 

The expansion in the Indian power sector has offered strong opportunities for foreign investment and technology partnerships. The Indo-Denmark Energy Cooperation comes amid growing ties that have led to a steady rise in bilateral trade to US$1.3 billion in 2018-19. Meanwhile, investment from Denmark has been reported at over US$610 million since 2000, in sectors like port and shipping, renewable energy, electronics, food processing, chemicals, and engineering. Signing the agreement, representatives of the two Governments said that they would endeavour to take necessary steps to encourage strategic and technical co-operation in the power sector.