Cabinet Approves Rs. 1.86 Lakh Cr Green Energy Corridor III

Union Cabinet has approved Green Energy Corridor Phase-III (GEC-III) scheme with a total project outlay of Rs. 1,86,405 crore. The approval targets strengthening of India’s Intra-State Transmission System (InSTS) alongside deployment of Battery Energy Storage Systems (BESS). This scheme is expected to be implemented by FY33.

Intra-State Transmission Scheme establishes necessary infrastructure to evacuate power from renewable energy plants (solar and wind energy parks, etc.) and integrate it into the state grid for powering districts within the same state.

GEC-III will Evacuate 135 GW Renewable Power

Out of the total Rs. 1,86,405 crore, an investment of Rs. 1,36,378 crore will be towards developing Intra-State Transmission networks. This will enable evacuation of up to 135 GW of renewable energy and grid integration across all States and Union Territories (UTs) in India.

GEC-III Combines Grid-Scale BESS with Energy Evacuation

GEC-III is no longer just a transmission-corridor programme – it now combines nationwide renewable evacuation with grid-scale storage. Phase III will also deploy BESS for consistent power supply, while neither of the previous phases included grid-scale storage.

Furthermore, Rs. 50,000 crore will be directed towards deploying 50 GWh of Battery Energy Storage Systems (BESS) at important locations, such as generator sites and grid nodes. This is to tackle the unpredictable nature of renewable energy; during peak hours, instead of curtailment, BESS can absorb the excess, provide energy during non-solar hours, and enable a consistent power supply during inconsistent weather.

Centre to Provide Rs. 54,082 Cr Support for GEC-III

GEC-III scheme involves Central Financial Support of Rs. 54,082 crore to offset Intra-State transmission charges, which will keep power costs from rising due to heavy infrastructure setup costs. Consequently, this capital grant supports the end user in bearing the financial costs of infrastructure setup.

How GEC-III Projects Will Be Implemented

Greenfield Projects under this scheme will be implemented via Tariff-Based Competitive Bidding TBCB mode. In contrast, brownfield upgradation and network augmentation works will be executed under Cost Plus Basis (CPB) model.

State Transmission Utilities (STUs) will oversee implementation of projects under this scheme. Transmission Service Providers (TSPs) will participate in TBCB on a Build-Own-Operate-Maintain (BOOM) basis.

GEC-III Marks Major Scale-Up Over Previous Phases

Scope under GEC Phase-III has increased significantly compared to earlier Phase-I & II. Project outlay in Phase- I was Rs. 10,141.68 crore and Rs. 12,031 crore in Phase-II for evacuation of 24 GW and 20 GW of power, respectively. This means outlay in Phase III has increased by over 8 times compared to combined investment from the previous phases. Additionally, Phase III will enable evacuation of approximately 3 times more renewable energy than the combined scope of the previous two phases.

Unlike the limited scope of the earlier Phase I that covered 7 states and Phase II which covered 8 states, Green Energy Corridor’s Phase III will be implemented across all states and UT’s in India.