Russia and India need to strengthen cooperation in renewable energy

In recent years, India and Russia have maintained a strong partnership across multiple sectors, but their collaboration in the renewable energy field has yet to reach its full potential. As global efforts intensify to combat climate change, renewable energy has emerged as a clean, cost-effective, and efficient alternative for sustainable development. With this in mind, the upcoming visit of Russian President Vladimir Putin to India on December 24 is expected to place renewable energy at the center of discussions between the two nations. Despite the growing interest, it remains uncertain whether a concrete agreement will be reached. However, both countries recognize the importance of expanding their energy ties. Russia, in particular, sees significant opportunities in India’s rapidly growing renewable energy market, which is driven largely by private sector investments. With annual clean energy investments exceeding $10 billion, India presents an attractive partner for Russian companies looking to diversify their energy portfolio. India currently has 26 GW of installed renewable energy capacity, placing it among the world's top five nations in this area. The country aims to increase that number to 55 GW by 2017, signaling a clear commitment to sustainable growth. To support this goal, India and Russia have agreed to establish a joint venture worth $180 million to produce solar modules. This initiative is designed to bolster India’s nascent solar industry and ensure the steady supply of silicon ingots needed for large-scale solar projects. Beyond solar, India has also released a draft for the second phase of its national solar energy plan, with the ultimate aim of becoming a global leader in new energy technologies. Meanwhile, Russia has made its own strides in the renewable energy sector, including a $300 billion energy-saving initiative and a target to reduce energy consumption by 40% by 2020. Despite these efforts, both countries still lag behind in renewable energy adoption compared to global trends. A stronger partnership between Russia and India could create a win-win scenario, especially as Russia continues to rely heavily on oil, gas, and coal—accounting for 80% of its total trade. In addition to renewables, the two nations have a long history of collaboration in traditional energy sectors. Sakhalin-1, one of the most notable examples, has been a model of successful bilateral energy cooperation. Indian companies have invested heavily in Russian oil and gas projects, including a $2.7 billion stake in Sakhalin-1, operated by ExxonMobil. More recently, India’s Oil and Natural Gas Corporation acquired Imperial Energy in London for $2.1 billion, aiming to expand its presence in Siberia. Although the deal was criticized for overpayment, it highlights India’s ongoing interest in Russian energy resources. During a meeting in 2006, Indian Prime Minister Manmohan Singh expressed hopes for a daily supply of one million barrels of crude oil from Russia. While progress has been slow, the current diplomatic engagement may offer a new opportunity to advance this vision. Both countries are committed to deepening their energy ties. For Russia, opening up new markets in Asia aligns with broader strategic goals. At the same time, India seeks reliable energy supplies to support its growing economy. In addition to oil and gas, Russia possesses advanced civilian nuclear technology that could enhance India’s energy security. However, concerns following the Fukushima disaster have slowed down nuclear cooperation. Local opposition to the Kudankulam plant remains a challenge, but with continued dialogue, both nations can work toward a more stable and secure energy future.