New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Green Energy Corridor Phase III (GEC-III) scheme to strengthen India’s Intra-State Transmission System (InSTS) and enable the evacuation of up to 135 GW of renewable energy across States and Union Territories.
The Green Energy Corridor Phase III scheme also provides for the deployment of 50 GWh of Battery Energy Storage Systems (BESS) at the renewable energy developer/generator end or at other locations of importance for grid flexibility.
The BESS deployment under the Green Energy Corridor Phase III scheme is aimed at addressing intermittency, congestion, peak-hour curtailment and non-solar hour demand.
The scheme will facilitate the integration of renewable energy into the grid and power evacuation within States and Union Territories.
₹1.86 Lakh Crore Project Outlay
The Green Energy Corridor Phase III scheme is targeted to be set up by FY 2032-33 with a total project outlay of ₹1,86,405 crore.
Of the total outlay, ₹1,36,378 crore will be allocated for the development of Intra-State Transmission Systems (InSTS) under GEC-III, while ₹50,000 crore will be allocated for 50 GWh of Battery Energy Storage Systems (BESS).
The scheme involves total Central Financial Support of ₹54,082 crore. The Central Financial Assistance (CFA) will help offset Intra-State transmission charges and keep power costs down.
According to the government, the support under the Green Energy Corridor Phase III scheme will ultimately benefit end users and citizens by helping contain power costs.
Implementation of Green Energy Corridor Phase III
All Greenfield projects under the InSTS component of the Green Energy Corridor Phase III scheme will be implemented through Tariff Based Competitive Bidding (TBCB).
Brownfield upgradation and network strengthening works will be executed under the Cost Plus Basis (CPB).
The State Transmission Utilities will serve as the overall implementing agencies. Transmission Service Providers (TSPs) will participate under the TBCB model through a Build-Own-Operate-Maintain (BOOM) framework.
Also Read: Multi Nano Sense Technologies Gets ₹37.51 Crore RDI Support to Advance MEMS Gas Sensor
135 GW Renewable Energy Evacuation Capacity
The Green Energy Corridor Phase III scheme is designed to strengthen transmission infrastructure to support the evacuation of up to 135 GW of renewable energy across States and Union Territories.
The scheme will also support the deployment of 50 GWh of BESS to provide greater flexibility to the power grid. The storage systems are intended to help address renewable energy intermittency, congestion, peak-hour curtailment and demand during non-solar hours.
Support for India’s Non-Fossil Energy Target
The Green Energy Corridor Phase III scheme will help in achieving the target of 900 GW of installed non-fossil capacity by 2035.
The scheme is also expected to contribute to the country’s long-term energy security and promote ecologically sustainable growth by reducing carbon footprint.
According to the government, the Green Energy Corridor Phase III scheme will generate direct and indirect employment across the power, manufacturing and construction sectors.
Battery Energy Storage System manufacturing and deployment will additionally create employment opportunities in the domestic energy storage industry.
The scheme is also expected to generate long-term skilled employment in operations, maintenance and grid management across participating States.
The Green Energy Corridor Phase III scheme, with its focus on intra-state transmission infrastructure and battery energy storage, is aimed at strengthening grid integration and enabling greater evacuation of renewable energy across India.
