New Delhi: On Wednesday the union cabinet approved the ‘Green Energy Corridor Phase III’ scheme with an outlay of Rs. 1.86 lakh crore to set up an intra-state transmission system with battery storage to evacuate 135 GW of renewable energy. This is significant in view of India’s ambitious target of 500 GW of renewable energy capacity by 2030.

With the help of this initiative, India’s Intra-State Transmission System (InSTS)  will be strengthened, which will help in enabling the evacuation of up to 135 gigawatts (GW) of renewable energy across states/union territories.

Also, this scheme provides for deployment of 50 GWh of Battery Energy Storage Systems (BESS) at the Renewable Energy (RE) development/generator end or any other location of importance for grid flexibility to address intermittency, congestion, peak hour curtailment, and meet non-solar hour demand. This scheme will also facilitate grid integration and power evacuation within the states/UTs of India.   

This initiative is to be set up by FY 2032–33 with a total project outlay of Rs. 1,86,405 crore, comprising Rs. 1,36,378 crore for the development of the Intra-State Transmission System (InSTS) under GEC-III and Rs. 50,000 crore for 50 GWh of Battery Energy Storage System (BESS). Along with this plan, this scheme involves a total Central Financial Support of Rs. 54,082 crore.

The Central Financial Assistance (CFA) will help in offsetting the intra-state transmission charges and thus keep the power costs down. Thus, the government support will ultimately benefit the end users the citizens of India.

Every project (Greenfield) that comes under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB) mode, while brownfield upgradation and network strengthening works will be executed under Cost Plus Basis (CPB).

Under TBCB, the Transmission Service Providers (TSPs) will participate; the state transmission utilities will be the overall implementing agency on a Build Own Operate Maintain (BOOM) model. This scheme will help in achieving the target of 900 GW of installed non-fossil capacity by 2035.  

The scheme will also contribute to long-term energy security of the country and promote ecologically sustainable growth by reducing carbon footprint. It will generate large direct & indirect employment in the power sector, manufacturing, and construction industries.

Battery Energy Storage System (BESS) manufacturing and deployment will additionally generate employment in the domestic energy storage industry. The scheme will also generate long-term skilled employment in operation, maintenance, and grid management across participating states.

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