Union Cabinet Approves 'Green Energy Corridor Phase-III' Project with Investment of ₹1.86 Lakh Crore
The Cabinet, chaired by Prime Minister Narendra Modi, has approved the GEC-III scheme aiming to establish the transmission of 135 GW of renewable energy and 50 GWh of battery storage systems.
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has granted approval to the 'Green Energy Corridor Phase-III' (GEC-III) scheme. The primary objective of this initiative is to strengthen India's Intra-State Transmission System (InSTS), enabling the transport of up to 135 gigawatts (GW) of renewable energy across various states and union territories.
To increase grid flexibility and address challenges such as supply interruptions, congestion, and peak-hour curtailment, the scheme provides for the installation of 50 GWh of Battery Energy Storage Systems (BESS). These systems will be deployed at renewable energy generation sites or other critical locations to ensure electricity demand is met even during periods when solar energy is unavailable.
Regarding the project's financial details, the scheme is targeted for completion by the financial year 2032-33, with a total estimated cost of ₹1,86,405 crore. Out of this, ₹1,36,378 crore has been allocated for the development of the Intra-State Transmission System and ₹50,000 crore for the Battery Energy Storage Systems (BESS). The Central Government will provide financial assistance (CFA) amounting to ₹54,082 crore, which will help reduce transmission charges and ultimately keep electricity costs controlled for citizens.
In terms of the implementation model, all greenfield projects under the scheme will be executed through Tariff-Based Competitive Bidding (TBCB). Conversely, brownfield upgrades and network strengthening works will be carried out on a 'Cost Plus Basis' (CPB). State Transmission Utilities will act as the overall implementing agencies for the scheme, and Transmission Service Providers (TSP) will participate via TBCB under the 'Build-Own-Operate-Maintain' (BOOM) model.
This scheme is designed to support the achievement of the national goal of installing 900 GW of non-fossil capacity by the year 2035. This will not only ensure long-term energy security and reduce the carbon footprint but also create large-scale direct and indirect employment opportunities in the energy, manufacturing, and construction sectors. Specifically, the construction of BESS is expected to generate new jobs within the domestic energy storage industry.
