India has identified Netherlands as a key strategic partner for cooperation on technologies, innovation and investments required for India’s ambitious energy transition plans. Multiple big-ticket announcements across renewables, green hydrogen and climate action have recently been made between the two nations.
Energy Transition Push in India
India aims to meet 50% of its energy requirements from renewable sources by 2030 as part of its net-zero emission commitments. For this monumental shift away from fossil fuels, India has announced massive target capacity additions:
- 500 GW renewable energy by 2030
- 5 million tonnes green hydrogen production by 2030
- Carbon intensity reduction of 45% by 2030 over 2005 baseline
However, over $500 billion capital investments are required to fund this transition. Indo-Dutch collaboration will be crucial to mobilize technology, investments and project management skills.
Strategic Partnership with the Netherlands
The Netherlands offers compelling propositions for cooperating on sustainable energies with its:
- Leadership in renewable technologies and smart-grid management
- Commercial viability of green hydrogen production through offshore wind energy
- Ambition to fully transition into renewable energy economy by 2050
Thus in May 2022, India has elevated its ties with Netherlands to a ‘Strategic Partnership on Water and Climate’ with extensive future cooperation envisioned.
Key Pillars of Indo-Dutch Partnership
The major areas of focus under the strategic partnership include:
Renewable Energy
Promoting flow of advanced technologies, investments and project management skills around clean energy systems.
Offshore Wind
Tapping commercial offshore wind power generation based on Dutch expertise for India’s ambitious plans of 50 GW offshore wind target by 2032.
Green Hydrogen
Facilitating cost-effective green hydrogen production, storage and export using renewable electricity and seawater.
Climate Action
Enhancing cooperation on reducing greenhouse gas emissions, negative carbon technologies, carbon trading mechanisms and climate finance.
Significant Developments Over the Last Year
Since establishing the strategic partnership in mid-2022, several noteworthy partnerships have already actualized across sunrise energy domains:
Green Hydrogen
In September 2022, Reliance and Dutch firm Liquid Wind signed MoU for green hydrogen production. In November 2022, Greenko announced plans to invest $5 billion with Netherlands’ Skyline Renewables to develop green hydrogen production facilities in India.
Offshore Wind
In May 2022, Suzlon signed a strategic partnership agreement with Dutch maritime infrastructure company Huisman for local manufacturing of offshore wind turbine parts in India.
Sustainable Mobility
In January 2023, Convergence Energy Services Limited (CESL) signed an agreement with Dutch firms for introducing electric buses across 5 Indian cities.
Climate Action
The Netherlands Ambassador expressed interest to cooperate on Pune Metro project financing in January 2023. The Dutch government has set up a $5.2 billion fund to finance climate projects across emerging economies.
These initial partnerships reflect growing Indo-Dutch ambition to jointly tap the massive clean energy opportunity in India through combining complementary strengths.
Key Challenges
However some key bottlenecks need resolution for realizing the full potential:
- High costs of renewable energy storage solutions currently
- Technology for cost-competitive green hydrogen production still evolving
- Funding huge capital investments required for renewable energy projects
- Complex land acquisition issues for large-scale renewable farms
- Need ecosystem of EV charging infrastructure and battery storage manufacturing
Future Prospects
Nonetheless, the outlook remains optimistic for Indo-Dutch leadership in global energy transition through:
- Joint innovation centers to develop storage solutions for renewable energy
- Leveraging Dutch expertise in floating solar farms and agri-photovoltaic projects
- Catalyzing investments into renewable energy manufacturing capacity in India
- Evaluating hydrogen derivatives export opportunities using Dutch seaport connectivity
Key Indo-Dutch Partnership Developments
| Date | Initiative | Area | Amount |
| Sep 2022 | Reliance-Liquid Wind MoU | Green Hydrogen | $2 billion |
| Nov 2022 | Greenko-Skyline JV | Green Hydrogen | $5 billion |
| May 2022 | Suzlon-Huisman Agreement | Offshore Wind | N/A |
| Jan 2023 | CESL-Dutch Firms Deal | Sustainable Mobility | €200 million |
The comprehensive strategic partnership lays down a robust framework for the two nations to lead the world towards a sustainable energy future.
- Realizing India’s ambitious energy transition goals requires integration of advanced technologies, process excellence and patient capital – strengths that Dutch firms specialize in.
- The comprehensive collaboration roadmap devised by the two nations synergistically combines their unique capabilities for overcoming barriers hampering adoption of renewables.
- If successful, the Indo-Dutch strategic partnership can emerge as the gold standard for developing economies aiming to secure energy independence in a climate-conscious growth pathway.
