The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Green Energy Corridor Phase-III (GEC-III) scheme to strengthen India’s Intra-State Transmission System (InSTS) and facilitate the evacuation of up to 135 GW of renewable energy across States and Union Territories.
The scheme, targeted for completion by FY 2032-33, has a total project outlay of Rs 1,86,405 crore. Of this, Rs 1,36,378 crore has been earmarked for development of Intra-State Transmission Systems under GEC-III, while Rs 50,000 crore will be allocated for deployment of 50 GWh of Battery Energy Storage Systems (BESS).
The scheme includes Central Financial Support of Rs 54,082 crore. The Central Financial Assistance will help offset intra-state transmission charges and, according to the government, help keep power costs down for end users.
The Battery Energy Storage Systems will be deployed at renewable energy developer or generator locations, or at other locations considered important for grid flexibility. The storage systems will help address challenges related to renewable energy intermittency, transmission congestion and peak-hour curtailment, while supporting electricity demand during non-solar hours.
The scheme is aimed at facilitating better integration of renewable energy into the power grid and improving power evacuation within States and Union Territories.
All greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB), while brownfield upgradation and network strengthening works will be undertaken on a Cost Plus Basis (CPB).
State Transmission Utilities will be the overall implementing agencies, while Transmission Service Providers will participate under the TBCB mechanism through a Build-Own-Operate-Maintain (BOOM) model.
The government said the GEC-III scheme will support the target of achieving 900 GW of installed non-fossil capacity by 2035. It is also expected to contribute to long-term energy security and promote sustainable growth by reducing the carbon footprint.
The scheme is expected to generate direct and indirect employment in the power, manufacturing and construction sectors. The manufacturing and deployment of BESS will further create employment opportunities in the domestic energy storage industry.
It will also generate long-term skilled employment in areas including operation, maintenance and grid management across participating States.
-PIB
