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Centre Clears Green Energy Corridor Phase 3
The Centre approves Phase 3 of the Green Energy Corridor (GEC) with an outlay of ₹1.86 lakh crore to facilitate evacuation of up to 135 GW of renewable energy into the grid. Phase 3 includes, for the first time, a dedicated battery energy storage component with provisions for deploying 50 GWh of Battery Energy Storage Systems.
Green Energy Corridor Phase 3:
| Dimension | Key Details |
|---|---|
| Programme nature | The Green Energy Corridor (GEC) programme comprises dedicated transmission infrastructure for integrating large-scale renewable energy, including solar and wind, into the national power grid. |
| Allocation: Intra-State Transmission Systems | Phase 3 allocation comprises over ₹1.36 lakh crore for Intra-State Transmission Systems (InSTS). |
| Allocation: BESS | Phase 3 allocation comprises ₹50,000 crore for 50 GWh of BESS. |
| Allocation: Central Financial Support | Phase 3 allocation comprises ₹54,082 crore as Central Financial Support (CFS). |
| CFS usage | CFS provides for offsetting intra-state transmission charges and keeping power costs lower for end users. |
| Implementation model: Greenfield InSTS projects | Greenfield projects under InSTS comprise Tariff-Based Competitive Bidding (TBCB). |
| Implementation model: Brownfield and network-strengthening | Brownfield upgrades and network-strengthening comprise a Cost-Plus Basis (CPB) model. |
| Implementing agencies and participation model | State transmission utilities serve as overall implementing agencies, and transmission service providers participate in the TBCB process under a build-own-operate-maintain model. |
| Completion timeline | GEC Phase 3 comprises a completion timeline of FY33. |
| Monitoring mechanism | A steering committee at the Cabinet Secretary level mandates monitoring of GEC-II and GEC-III progress twice a year. |
| MNRE implementation phases | GEC implementation under MNRE comprises 2 phases, GEC-I and GEC-II, to augment transmission lines and transformation capacity. |
| Delays: GEC-I and GEC-II timelines | GEC-I comprises an expected completion by March 2027, and GEC-II comprises an expected completion of all projects by 2028. |
| Geographical footprint and proposals | Proposals comprise submissions from at least 13 states, and GEC coverage comprises 8 states under GEC-I and 7 states under GEC-II. |
| Definition: Evacuation | Evacuation comprises transferring electricity generated from renewable sources to the places where it is consumed. |
| Definition: Energy storage systems | Energy storage systems comprise facilities for storing excess renewable electricity during high-generation periods and discharging it when demand rises but generation remains low. |
| Definition: GWh | A GWh comprises a measure of total energy produced, consumed, or stored over a period. |
| FY26 restriction data | FY26 data comprises around 6,900 GWh of clean electricity under restrictions due to a mismatch between rapid renewable energy deployment and the pace of transmission infrastructure commissioning. |
| Current installed storage capacity | Installed storage capacity comprises BESS at ~2.9 GW and Pumped Hydro Storage (PHS) at ~7.2 GW. |
| CEA plan storage targets (by 2035-36) | Central Electricity Authority plan targets comprise total storage capacity of 174 GW / 888 GWh, including BESS of 80 GW / 321 GWh and PHS of 94 GW / 567 GWh. |
| ISTS recovery period reference | The inter-state transmission (ISTS) reference model comprises upfront capital by transmission service providers with recovery over a 35-year period. |