The Union Cabinet has approved Green Energy Corridor Phase-III with a total outlay of INR 1.86 lakh crore to strengthen intra-State transmission systems, support 50 GWh of battery storage and enable evacuation of up to 135 GW of renewable energy by FY2032-33.
New Delhi — The Union Cabinet has approved the Green Energy Corridor Phase-III (GEC-III) scheme with a total project outlay of INR 1,86,405 crore to strengthen India’s intra-State transmission infrastructure and support deeper integration of renewable energy into the national power system.
The scheme is aimed at enabling evacuation of up to 135 GW of renewable energy across States and Union Territories and is targeted for completion by FY2032-33.
Out of the total outlay, INR 1,36,378 crore has been earmarked for development of intra-State Transmission Systems. Another INR 50,000 crore will be used to support deployment of 50 GWh of Battery Energy Storage Systems. The scheme also includes central financial support of INR 54,082 crore.
The battery storage component will be deployed at renewable energy developer or generator locations, as well as at other sites important for improving grid flexibility. The government said this component is intended to address intermittency, transmission congestion, peak-hour curtailment and electricity demand during non-solar hours.
The Central Financial Assistance under the scheme will help offset intra-State transmission charges, which the government said will support lower power costs for end users.
Under the intra-State transmission component, all greenfield projects will be implemented through Tariff Based Competitive Bidding. Brownfield upgrades and network-strengthening works, meanwhile, will be carried out on a Cost Plus Basis.
State Transmission Utilities will act as the overall implementing agencies, while Transmission Service Providers will participate in TBCB projects under a Build-Own-Operate-Maintain model.
The scheme is expected to support India’s long-term clean-energy target of achieving 900 GW of installed non-fossil fuel capacity by 2035. It is also intended to improve long-term energy security and reduce carbon emissions through higher renewable power integration.
The government said the programme is expected to generate direct and indirect employment across the power, manufacturing and construction sectors. The battery storage component is also likely to support activity in India’s domestic energy-storage industry, while transmission expansion is expected to create long-term skilled jobs in operations, maintenance and grid management.
