The Union Cabinet has approved the Green Energy Corridor Phase III (GEC-III) with a total outlay of Rs 1,86,405 crore, marking a major expansion of India's state-level power transmission network to support the rapid growth of renewable energy.
The scheme, approved under the chairmanship of Prime Minister Narendra Modi, will strengthen the Intra-State Transmission System (InSTS) across states and Union territories. The infrastructure is designed to enable the evacuation of up to 135 GW of renewable energy.
According to PIB release, a major component of GEC-III is the deployment of 50 GWh of Battery Energy Storage Systems (BESS). These systems can be installed at renewable energy generation sites or other strategically important locations to improve grid flexibility.
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The storage capacity is intended to address challenges linked to renewable power, including intermittent generation, transmission congestion, peak-hour curtailment and electricity demand during non-solar hours.
The scheme is targeted for completion by FY2032-33. Of the overall outlay, Rs 1,36,378 crore has been earmarked for intra-state transmission infrastructure, while Rs 50,000 crore will support the 50 GWh BESS component.
The Centre will provide Rs 54,082 crore in central financial support. According to the government, this assistance will help reduce intra-state transmission charges and, in turn, keep electricity costs lower for consumers.
Greenfield transmission projects under the scheme will be awarded through Tariff Based Competitive Bidding, while brownfield upgrades and network strengthening will follow the cost-plus model. State Transmission Utilities will oversee implementation.
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The government expects GEC-III to support its target of 900 GW of installed non-fossil fuel capacity by 2035. The scheme is also expected to create employment across power transmission, construction and manufacturing, while boosting the domestic battery storage industry.
The initiative is aimed at improving renewable power evacuation, strengthening long-term energy security and supporting India's transition towards a lower-carbon electricity system.
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