The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Green Energy Corridor Phase-III (GEC-III) scheme to strengthen India’s intra-state power transmission infrastructure and support the integration of large-scale renewable energy into the electricity grid.
The scheme aims to facilitate the evacuation of up to 135 GW of renewable energy across various states and Union Territories. It is targeted for completion by Financial Year 2032-33 and has a total financial outlay of ₹1,86,405 crore.
Of the total investment, ₹1,36,378 crore will be allocated for developing and strengthening intra-state transmission infrastructure. Another ₹50,000 crore will be used for deploying 50 GWh of Battery Energy Storage Systems (BESS). The storage systems will be installed at renewable energy generation sites or other important locations across the grid.
The planned BESS capacity is expected to improve grid flexibility and help manage the intermittent nature of renewable power generation. It will also support the grid in dealing with transmission congestion and peak-hour curtailment. The storage systems can provide electricity during non-solar hours, thereby supporting a more reliable and stable power supply.
The Central Government will provide financial assistance of ₹54,082 crore for the scheme. The support is expected to help offset intra-state transmission charges and reduce the financial burden associated with renewable energy integration. The government expects these benefits to contribute to keeping electricity costs lower for consumers.
Under the implementation framework, new greenfield transmission projects will be developed through the Tariff Based Competitive Bidding (TBCB) mechanism. Existing brownfield projects involving network strengthening and upgrades will be undertaken under the Cost Plus Basis (CPB) model.
State Transmission Utilities will serve as the primary implementing agencies for the transmission component. Transmission Service Providers will participate in projects awarded through the TBCB route and will follow a Build-Own-Operate-Maintain model.
GEC-III is expected to play an important role in supporting India’s broader target of achieving 900 GW of installed non-fossil fuel energy capacity by 2035. The expansion of transmission infrastructure and energy storage is intended to improve renewable power evacuation and facilitate greater grid integration.
The scheme is also expected to create employment opportunities across the power, manufacturing, construction, and energy storage sectors. Increased deployment of BESS could support the development of India’s domestic energy storage industry, while the construction, operation, maintenance, and management of transmission and storage assets are expected to generate skilled and long-term employment across participating regions.
Srivatsan Iyer, Global CEO, Hero Future Energies
“Green Energy Corridor Phase-III addresses a critical need. As renewable capacity scales up, evacuation infrastructure has to keep pace, and much of that constraint sits at the state level. Strengthening intra-state transmission, and building it ahead of generation, is essential to avoid stranded capacity and curtailment.
The 50 GWh of storage is equally significant. Deployed at the generator end and at key grid locations, it will help absorb surplus solar, ease congestion and supply power in non-solar hours. This is how renewable energy becomes firm and dispatchable, which is what the grid increasingly values. Against the CEA’s projected requirement of over 236 GWh by 2031-32, it is a meaningful first step. The support on intra-state transmission charges will also help keep costs in check for consumers.
What matters now is execution. Transmission, storage and generation need to be planned together, with predictable timelines and consistent tender structures. Where that happens, capital flows more efficiently and projects are delivered on time.”
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