New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Green Energy Corridor Phase-III (GEC-III) to strengthen intra-state power transmission networks and support the evacuation of up to 135 GW of renewable energy across States and Union Territories.
The scheme, targeted for implementation by FY 2032-33, has a total project outlay of ₹1,86,405 crore, including funding for intra-state transmission infrastructure and Battery Energy Storage Systems (BESS).
₹1.36 Lakh Crore for Intra-State Transmission
Under GEC-III, ₹1,36,378 crore has been earmarked for the development of Intra-State Transmission Systems (InSTS).
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The scheme will also provide for 50 GWh of Battery Energy Storage Systems, with an allocation of ₹50,000 crore. The storage systems can be deployed at renewable energy developer or generator locations or other locations considered important for grid flexibility.
According to the government, the storage component is intended to address challenges such as renewable-energy intermittency, transmission congestion, peak-hour curtailment and demand during non-solar hours.
Centre to Provide ₹54,082 Crore Financial Support
The scheme involves ₹54,082 crore in Central Financial Support (CFA). The government said this support will help offset intra-state transmission charges and is intended to keep power costs lower for consumers.
The remaining project outlay will be met through the financing structure prescribed for the respective transmission and storage components.
Competitive Bidding for Greenfield Projects
Greenfield projects under the InSTS component will be implemented through Tariff-Based Competitive Bidding (TBCB). Brownfield network upgrades and strengthening works will be undertaken on a Cost Plus Basis (CPB).
State Transmission Utilities will serve as the overall implementing agencies. Transmission Service Providers participating through the competitive-bidding route will undertake projects under the Build-Own-Operate-Maintain (BOOM) model.
Scheme Linked to 900 GW Non-Fossil Capacity Target
The government said GEC-III will support the national target of 900 GW of installed non-fossil fuel capacity by 2035 by strengthening the transmission network needed to integrate renewable power.
The scheme is also expected to support long-term energy security and the integration of renewable electricity into state-level grids.
The government has projected employment generation across the power, manufacturing and construction sectors, including additional opportunities linked to domestic BESS manufacturing, deployment, operation, maintenance and grid management.
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