New Delhi: The Union Cabinet on Wednesday approved Green Energy Corridor Phase-III, a Rs 1,86,405 crore scheme to strengthen electricity transmission networks and support the transfer of up to 135 GW of renewable power.
The programme also includes 50 GWh of battery energy storage, helping India manage fluctuations in solar and wind generation. Completion is targeted for FY 2032-33.
Green Energy Corridor-III Funding
The scheme allocates Rs 1,36,378 crore to strengthening intra-state transmission systems and Rs 50,000 crore to Battery Energy Storage Systems.
The Centre will provide financial assistance of Rs 54,082 crore. The government said this support would offset intra-state transmission charges and reduce their impact on consumer electricity costs.
Announcing the decision, Union Minister Ashwini Vaishnaw emphasised that transmission infrastructure must be ready ahead of renewable energy projects.
Transmission Capacity Before Generation
The Cabinet briefing highlighted the risk of renewable power curtailment when transmission networks cannot carry the electricity generated.
Green Energy Corridor-III aims to address this challenge across states and Union Territories, enabling larger volumes of renewable electricity to reach consumers.
Solar and wind output changes with weather and daylight conditions. Stronger networks and storage are therefore needed to balance electricity supply with demand.
50 GWh Battery Storage Push
Battery systems may be installed at renewable generation sites or other locations important for grid flexibility.
They are intended to tackle intermittent generation, transmission congestion and peak-hour curtailment, while supporting electricity demand during non-solar hours.
The storage component will complement transmission expansion, allowing the grid to accommodate more variable renewable power.
Competitive Bidding For New Projects
New intra-state transmission projects will be awarded through tariff-based competitive bidding. Selected service providers will build, own, operate and maintain the assets.
State Transmission Utilities will oversee implementation. Existing network upgrades will follow a cost-plus approach.
The programme supports India’s target of 500 GW of non-fossil fuel capacity by 2030, strengthening the infrastructure needed to integrate expanding renewable generation into the system.
