The Union Cabinet has approved the Rs 1,86,405 crore Green Energy Corridor Phase-III (GEC-III), the country's largest push yet to build the transmission backbone its clean-energy ambitions need.
Announced after the Cabinet meeting on Wednesday by Information and Broadcasting Minister Ashwini Vaishnaw, the scheme is aimed at strengthening intra-state transmission systems so that up to 135 gigawatts of renewable energy can be evacuated across states and union territories. It is targeted for completion by FY 2032-33.
Where the money goes
Of the total outlay, Rs 1,36,378 crore is earmarked for developing and strengthening intra-state transmission systems, while Rs 50,000 crore will fund 50 GWh of battery energy storage systems — the first time storage has been included in a Green Energy Corridor scheme. The Centre will provide Rs 54,082 crore in financial support, including Rs 45,005 crore for transmission works, Rs 6,000 crore in viability gap funding for batteries, and smaller allocations for earlier phases' liabilities and programme management.
The plan envisages 51,126 circuit kilometres of new transmission lines and 2,28,903 MVA of transformation capacity. Greenfield projects will go through tariff-based competitive bidding, while brownfield upgrades will be done on a cost-plus basis, with state transmission utilities as the implementing agencies.
Why it matters
The scheme tackles one of the power sector's most frustrating problems: even as peak electricity demand hits record highs, grid operators have had to curtail solar generation because transmission lines could not carry it. The 50 GWh of storage is meant to absorb that intermittency, ease congestion and meet demand during non-solar hours.
UN climate chief Simon Stiell welcomed the decision, saying stronger grids and battery storage would deliver "big dividends" in jobs and clean-energy opportunity. The government estimates the Central support will leverage about Rs 1.32 lakh crore in transmission investment and enable renewable investment of around Rs 4.6 lakh crore — a key enabler for India's target of 500 GW of non-fossil capacity by 2030.
Sources: India clears Rs 1.86 lakh crore green energy corridor scheme with battery storage | UN climate chief hails India's Green Energy Corridor-III
Announced after the Cabinet meeting on Wednesday by Information and Broadcasting Minister Ashwini Vaishnaw, the scheme is aimed at strengthening intra-state transmission systems so that up to 135 gigawatts of renewable energy can be evacuated across states and union territories. It is targeted for completion by FY 2032-33.
Where the money goes
Of the total outlay, Rs 1,36,378 crore is earmarked for developing and strengthening intra-state transmission systems, while Rs 50,000 crore will fund 50 GWh of battery energy storage systems — the first time storage has been included in a Green Energy Corridor scheme. The Centre will provide Rs 54,082 crore in financial support, including Rs 45,005 crore for transmission works, Rs 6,000 crore in viability gap funding for batteries, and smaller allocations for earlier phases' liabilities and programme management.
The plan envisages 51,126 circuit kilometres of new transmission lines and 2,28,903 MVA of transformation capacity. Greenfield projects will go through tariff-based competitive bidding, while brownfield upgrades will be done on a cost-plus basis, with state transmission utilities as the implementing agencies.
Why it matters
The scheme tackles one of the power sector's most frustrating problems: even as peak electricity demand hits record highs, grid operators have had to curtail solar generation because transmission lines could not carry it. The 50 GWh of storage is meant to absorb that intermittency, ease congestion and meet demand during non-solar hours.
UN climate chief Simon Stiell welcomed the decision, saying stronger grids and battery storage would deliver "big dividends" in jobs and clean-energy opportunity. The government estimates the Central support will leverage about Rs 1.32 lakh crore in transmission investment and enable renewable investment of around Rs 4.6 lakh crore — a key enabler for India's target of 500 GW of non-fossil capacity by 2030.
Sources: India clears Rs 1.86 lakh crore green energy corridor scheme with battery storage | UN climate chief hails India's Green Energy Corridor-III
