The Union Cabinet has approved the Green Energy Corridor Phase-III (GEC-III) scheme with a total project outlay of ₹1,86,405 crore to strengthen intra-state transmission networks and enable the evacuation of up to 135 GW of renewable energy across States and Union Territories.
The scheme, targeted for completion by FY2032-33, also provides for the deployment of 50 GWh of Battery Energy Storage Systems (BESS) to improve grid flexibility and support the integration of renewable power.
₹1.86 lakh crore investment
The total outlay includes ₹1,36,378 crore for the development of Intra-State Transmission Systems (InSTS) under GEC-III and ₹50,000 crore for 50 GWh of BESS.
The scheme involves Central Financial Support of ₹54,082 crore. The Central Financial Assistance (CFA) will help offset intra-state transmission charges, with the government expecting the support to help keep power costs lower for end users.
The transmission infrastructure will facilitate the evacuation and integration of renewable energy generated within States and Union Territories into the power grid.
Battery storage to address intermittency
The 50 GWh BESS capacity will be deployed at renewable energy developer or generator locations or at other locations considered important for grid flexibility.
The storage systems are expected to help address the intermittency of renewable generation, transmission congestion and peak-hour curtailment, while meeting electricity demand during non-solar hours.
The addition of large-scale storage capacity is also intended to improve the ability of the grid to absorb increasing volumes of renewable electricity as India’s non-fossil power capacity expands.
Competitive bidding for greenfield projects
Under the InSTS component, all greenfield projects will be implemented through the Tariff Based Competitive Bidding (TBCB) route.
Brownfield upgrades and network-strengthening works will be executed on a Cost Plus Basis (CPB).
State Transmission Utilities will serve as the overall implementing agencies. Transmission Service Providers participating through the TBCB route will implement projects under a Build-Own-Operate-Maintain (BOOM) model.
Supports 900 GW non-fossil target
The government said GEC-III will contribute to India’s target of achieving 900 GW of installed non-fossil capacity by 2035.
The expansion of intra-state transmission infrastructure is expected to address a key requirement for India’s renewable energy build-out by creating additional capacity to evacuate power from renewable energy-rich locations and integrate it with the wider electricity network.
The scheme is also expected to contribute to long-term energy security and support lower carbon emissions by enabling greater integration of renewable energy.
Employment across power and storage sectors
The government expects GEC-III to generate direct and indirect employment across the power, manufacturing and construction sectors.
The BESS component is expected to create additional employment opportunities in India’s domestic energy storage manufacturing and deployment ecosystem.
The development of the transmission network and storage assets is also expected to generate long-term skilled employment in areas including operations and maintenance and grid management across participating States and Union Territories.