Cabinet approves Rs 1.86 lakh crore plan to expand India’s renewable energy transmission network (Images: X)
New Delhi: The Union Cabinet has approved a major renewable energy infrastructure plan aimed at strengthening India’s clean power network. The Green Energy Corridor Phase-III (GEC-III) scheme will help evacuate up to 135 gigawatts (GW) of renewable energy across states and Union Territories.
The scheme approved on Wednesday, has a total project outlay of Rs 1,86,405 Crore and is planned for completion by the financial year 2032-33. The initiative is designed to improve the transmission infrastructure required for integrating large amounts of renewable power into the national electricity grid.
Under the scheme, Rs 1,36,378 crore will be allocated for the development of Intra-State Transmission Systems (InSTS), while Rs 50,000 crore will be used for deploying 50 GWh of Battery Energy Storage Systems (BESS). The government will provide a total Central Financial Assistance (CFA) of Rs 54,082 crore to support the project. Officials said the financial support will help reduce intra-state transmission charges, which could help control electricity costs for consumers.
A key part of the scheme is the installation of large-scale battery storage systems at renewable energy generation sites or other strategically important locations. The Battery Energy Storage Systems will help tackle challenges linked to renewable energy, including power fluctuations, grid congestion, peak-hour supply issues and demand during non-solar hours.
The storage infrastructure is also expected to support better grid flexibility as India expands its dependence on solar and wind energy.
The government said the project will generate employment opportunities across multiple areas, including battery storage manufacturing, power transmission, grid management, operations and maintenance. The expansion is also expected to create direct and indirect jobs in the power, manufacturing and construction sectors.
The Green Energy Corridor Phase-III scheme is expected to contribute towards India’s long-term goal of achieving 900 GW of installed non-fossil fuel capacity by 2035. According to the government, the initiative will strengthen energy security, support sustainable economic growth and help reduce carbon emissions.
Greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB) while brownfield upgrades and network strengthening projects will follow a Cost Plus Basis (CPB) Model.
State Transmission Utilities will act as the implementing agencies with Transmission Service Providers participating through a Build-Own-Operate-Maintain (BOOM) model.
