The Green Energy Corridor Phase-III Scheme

Context: The Union Cabinet chaired by Prime Minister of India approved the Green Energy Corridor Phase-III (GEC-III) scheme with an outlay of ₹1,86,405 crore.

About The Green Energy Corridor Phase-III Scheme:

What it is?

• A flagship central infrastructure scheme designed to expand and modernize India’s state-level power transmission grids (InSTS) while co-locating utility-scale battery energy storage systems (BESS) to facilitate smooth grid integration and bulk evacuation of intermittent renewable power.

Nodal Ministry: Ministry of New and Renewable Energy (MNRE).

Initially Launched In: The parent Green Energy Corridor (GEC) initiative was conceptualized in 2012–13 and rolled out as GEC Phase-I in FY 2015–16 followed by GEC Phase-II in January 2022.

Aim: To eliminate transmission bottlenecks and intermittency hurdles, prevent peak-hour renewable curtailment, satisfy non-solar hour power demand, and support India’s expanded target of installing 900 GW of non-fossil capacity by 2035.

Key Features:

• ₹1.86 Lakh Crore Outlay: Provides ₹1.36 lakh crore for transmission infrastructure and ₹50,000 crore for storage, supported by ₹54,082 crore in Central Financial Assistance.
• 50 GWh Battery Storage: Deploys 50 GWh of BESS at renewable generation and grid points to manage intermittency, congestion, frequency fluctuations and peak-hour demand.
• Dual Execution Model: New transmission projects will use Tariff Based Competitive Bidding (TBCB), while upgrades to existing infrastructure will follow the regulated Cost Plus Basis.
• 135 GW Evacuation Capacity: Creates infrastructure to evacuate 135 GW of renewable energy, significantly expanding the capacity developed under earlier transmission phases.
• Domestic Manufacturing & Skills: Boosts domestic production of battery cells, high-voltage transformers and digital grid equipment, while generating skilled employment in the power sector.

Significance:

• Central assistance can reduce transmission and wheeling costs for DISCOMs, while improved infrastructure enables greater utilisation of renewable power.
• Combining intra-state transmission with grid-scale storage enables greater integration of round-the-clock renewable power and supports India’s Net Zero 2070 pathway.