∅: The Union Cabinet on Wednesday approved the Green Energy Corridor Phase-III (GEC-III) scheme with a total outlay of Rs 1,86,405 crore to strengthen India’s intra-state power transmission network and facilitate the evacuation of up to 135 GW of renewable energy.
The scheme was approved at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi.
What Is Green Energy Corridor Phase-III?
The GEC-III scheme will strengthen the Intra-State Transmission System (InSTS) across states and Union Territories to enable the integration and evacuation of renewable power.
The initiative is particularly significant as India works towards its target of achieving 500 GW of renewable energy capacity by 2030.
The scheme is targeted for completion by FY 2032-33.
Rs 1.86 Lakh Crore To Be Spent Under Scheme
According to the government, the total project outlay of Rs 1,86,405 crore will include Rs 1,36,378 crore for developing intra-state transmission systems under GEC-III.
Another Rs 50,000 crore has been earmarked for deploying 50 GWh of Battery Energy Storage Systems (BESS).
The government will provide central financial assistance of Rs 54,082 crore under the scheme.
The financial support is expected to help offset intra-state transmission charges and keep electricity costs lower for consumers.
50 GWh Battery Storage Capacity Planned
The scheme includes the deployment of 50 GWh of battery storage at renewable energy developer or generator locations, or at other strategically important points in the grid.
The battery systems are intended to improve grid flexibility and address challenges such as renewable power intermittency, congestion and peak-hour curtailment.
The storage capacity will also help meet electricity demand during non-solar hours.
How Will The Projects Be Implemented?
Greenfield projects under the InSTS component will be developed through Tariff Based Competitive Bidding (TBCB).
Brownfield upgrades and network-strengthening projects will be implemented on a Cost Plus Basis (CPB).
State transmission utilities will serve as the overall implementing agencies. Transmission Service Providers will participate through the TBCB route under a Build-Own-Operate-Maintain (BOOM) model.
Scheme To Support India’s Clean Energy Target
The government said GEC-III will support India’s goal of reaching 900 GW of installed non-fossil fuel capacity by 2035.
The scheme is also expected to strengthen the country’s long-term energy security and support the transition towards cleaner power.
According to the government, the initiative will generate direct and indirect employment in the power, manufacturing and construction sectors. Expansion of battery storage manufacturing and deployment is also expected to create jobs in India’s domestic energy storage industry.
The project is further expected to create long-term skilled employment in areas including grid management, operations and maintenance.
