The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Green Energy Corridor Phase-III (GEC-III) scheme with a total outlay of Rs 1,86,405 crore to strengthen India's power transmission infrastructure and facilitate the evacuation of up to 135 gigawatts (GW) of renewable energy across states and Union Territories. The scheme, targeted for completion by the financial year 2032-33, includes the development of intra-state transmission networks and the deployment of large-scale battery energy storage systems.
Under the approved programme, Rs 1,36,378 crore has been allocated for developing intra-state transmission systems, while Rs 50,000 crore has been earmarked for installing 50 gigawatt-hours (GWh) of Battery Energy Storage Systems (BESS). The scheme also provides central financial support of Rs 54,082 crore to help offset transmission charges and contain electricity costs for consumers.
Battery storage to strengthen grid stability
The proposed battery storage facilities will be installed at renewable energy generation sites or other strategically important locations to improve grid flexibility. They are intended to address fluctuations in renewable power generation, transmission congestion and peak-hour curtailment while ensuring electricity availability during periods when solar power generation is unavailable.
Competitive bidding for transmission projects
All new transmission projects under the scheme will be implemented through tariff-based competitive bidding, while the modernisation and strengthening of existing networks will follow a cost-plus model. State Transmission Utilities will act as the overall implementing agencies, with transmission service providers participating under a build-own-operate-maintain framework.
The initiative is expected to support India's expanding renewable energy sector and contribute towards the government's target of achieving 900 GW of installed non-fossil fuel capacity by 2035. The government also expects the programme to generate employment in power transmission, construction, manufacturing, battery storage and grid management while strengthening the country's long-term energy security.