India Approves Third Phase Green Energy Corridor

Green Energy Corridor (GEC) Phase III Overview

1. Approval and Financial Outlay:

   • The Centre approved the third phase of the Green Energy Corridor (GEC) on October 1, 2026.
   • Total estimated cost: ₹1.86 lakh crore.

2. Capacity Focus:

   • Aim to facilitate the evacuation of 135 gigawatts (GW) of renewable energy (RE).
   • Addressing challenges as renewable energy capacity expands and strains the power grid.

3. GEC Programme Features:

   • First inclusion of a dedicated battery energy storage component with the deployment of 50 gigawatt-hours (GWh) of Battery Energy Storage Systems (BESS).
   • BESS helps store excess energy during peak production and supplies it when generation is low.

4. Financial Breakdown:

   • ₹1.36 lakh crore allocated for developing intra-state transmission systems (InSTS).
   • ₹50,000 crore allocated for BESS.
   • The scheme will receive ₹54,082 crore in Central Financial Support to offset intra-state transmission charges, aiding cost reduction for end users.

5. Implementation Framework:

   • Greenfield projects under InSTS will follow a tariff-based competitive bidding (TBCB) route.
   • Brownfield upgrades will use a cost-plus basis (CPB).
   • Projects to be managed by state transmission utilities with private participation under a build-own-operate-maintain model.

6. Expected Impact and Completion Targets:

   • Targeted completion by FY33.
   • Anticipated addition of 400 GW of RE capacity from 2030 to 2035-36, necessitating 160 GW of additional InSTS infrastructure.

7. Geographical Coverage:

   • Proposals received from 13 states, expanding from previous phases wherein GEC-I (8 states) and GEC-II (7 states) were implemented.

Infrastructure and Energy Storage Insights

1. Challenges of Renewable Energy Evacuation:

   • Issues of transmission bottlenecks and grid congestion, particularly during high solar generation periods leading to curtailments.
   • 6,900 GWh of clean electricity curtailed in FY26 due to mismatched deployment rates.

2. Energy Storage Capacity:

   • Current installed BESS capacity: 2.9 GW; Pumped Hydro Storage (PHS): 7.2 GW.
   • Future projections: Total energy storage capacity expected to reach 174 GW (888 GWh) by 2035-36, with BESS contributing 80 GW (321 GWh) and PHS 94 GW (567 GWh).

Government Oversight and Commitments

1. Monitoring and Administrative Oversight:
   • A Cabinet Secretary level steering committee will monitor GEC-III and GEC-II progress biannually.
   • Addressing consistent delays, with GEC-I expected completion by March 2027 and GEC-II by 2028.

Conclusion

• The GEC Phase III aims to enhance India's renewable energy infrastructure and resolve grid stability issues through substantial investment in transmission systems and battery storage technology, positioning India to effectively harness its growing renewable energy potential.