Green Energy Corridor Phase-III (GEC-III) scheme

Why in News?

The Union Cabinet has approved the Green Energy Corridor Phase-III (GEC-III) scheme to strengthen India’s Intra-State Transmission System (InSTS) and enable the evacuation of up to 135 GW of renewable energy across States and Union Territories. The scheme will also support the deployment of 50 GWh of Battery Energy Storage Systems (BESS) to improve grid flexibility and manage the intermittent nature of renewable energy.

About GEC-III

The scheme is targeted for completion by FY 2032-33 with a total project outlay of ₹1,86,405 crore. This includes ₹1,36,378 crore for Intra-State Transmission Systems and ₹50,000 crore for 50 GWh of BESS. The scheme provides Central Financial Support of ₹54,082 crore, which will help offset intra-state transmission charges and reduce the cost of electricity for consumers.

The BESS component will be deployed at renewable energy developer/generator locations or other strategically important locations. It will help address renewable energy intermittency, transmission congestion, peak-hour curtailment and demand during non-solar hours.

All greenfield InSTS projects will be implemented through Tariff-Based Competitive Bidding (TBCB), while brownfield upgradation and network-strengthening works will follow a Cost Plus Basis (CPB). State Transmission Utilities will act as the overall implementing agencies, while Transmission Service Providers will participate through TBCB under a Build-Own-Operate-Maintain (BOOM) model.

The scheme will support India’s target of achieving 900 GW of installed non-fossil fuel capacity by 2035. It is also expected to strengthen long-term energy security, reduce the carbon footprint and promote sustainable growth. The development and deployment of BESS will create employment opportunities in power transmission, manufacturing, construction, energy storage, operation, maintenance and grid management.

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