International RelationsImportant2025-05-02

India and Denmark Renew Clean Energy Cooperation MoU

In News

What Happened

In May 2025, India's Ministry of Power and Denmark's Ministry of Climate, Energy, and Utilities officially renewed their Memorandum of Understanding (MoU) on energy cooperation. The agreement was signed in New Delhi by India's Power Secretary Pankaj Agarwal and the Danish Ambassador, in the presence of Union Power Minister Manohar Lal. This proactive renewal extends the bilateral energy partnership for another five years to ensure seamless continuity in joint initiatives.

Why It Matters

The partnership is critical for supporting India's ambitious target of achieving net-zero carbon emissions by 2070. By leveraging Denmark's global leadership in wind energy and grid optimization, India can accelerate its clean energy transition, enhance domestic grid stability, and tackle urgent climate change challenges.

Background

History & Context

The original Indo-Danish Energy Partnership (INDEP) MoU was signed on June 5, 2020, forming a central pillar of the broader Green Strategic Partnership between the two nations. It was initially set to expire in June 2025. By renewing the agreement early in May 2025, the two countries launched INDEP-II (2025–2029) to maintain institutional engagements, such as regular Joint Steering Committee and Joint Working Group meetings.

What Changed

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Scope of Renewable Integration: BEFORE, the bilateral focus was primarily on basic capacity building and offshore wind planning. NOW, the agreement emphasizes advanced power system modeling to handle the complex grid integration of Variable Renewable Energy (VRE).
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Transport Sector Decarbonization: BEFORE, electric mobility was not a central pillar of the primary energy cooperation MoU. NOW, the development and deployment of Electric Vehicle (EV) charging infrastructure is an explicit priority area.
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Regional Grid Connectivity: BEFORE, cooperation was largely limited to domestic generation, forecasting, and energy efficiency. NOW, the framework actively explores cross-border electricity trading (CBET) to bolster regional energy security and market-based power exchange.

Prelims Angle

NCERT Connection

This topic connects to Class 11 Geography Chapter 7 (Natural Hazards and Disasters), specifically the sections addressing climate change and global warming. India's shift toward clean energy through international treaties like this MoU represents a direct structural mitigation strategy to reduce carbon footprints and avert climate-induced disasters.

Practice Questions

Q1

With Reference To

With reference to the renewed India-Denmark Energy Cooperation MoU (2025), consider the following statements: 1. It marks the first-ever energy partnership MoU signed between India and Denmark. 2. The renewed agreement broadens bilateral collaboration to include cross-border electricity trading and the development of EV charging infrastructure. Which of the statements given above is/are correct?

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