Cabinet Approves Green Energy Corridor Phase-III Scheme
Union Minister Ashwini Vaishnaw announced the decision following the Cabinet meeting, stating that sufficient transmission capacity would be essential as renewable generation increases, with the government aiming to ensure that grid infrastructure develops in advance of new renewable initiatives.
A presentation given during the briefing indicated that insufficient transmission infrastructure could lead to renewable energy being curtailed, and emphasized that the expansion of transmission capacity must occur before increasing renewable energy capacity.
The plan, aimed for completion by FY 2032-33, has an overall project budget of Rs 1,86,405 crore.
Out of this, Rs 1,36,378 crore will be allocated to enhance intra-state transmission systems, whereas Rs 50,000 crore has been set aside for the installation of 50 GWh of Battery Energy Storage Systems.
The Centre will offer financial support amounting to Rs 54,082 crore.
The extent of the initiative demonstrates the increasing difficulty of incorporating higher amounts of solar and wind energy into the grid.
In contrast to traditional generation, renewable energy production fluctuates with sunlight and wind conditions, necessitating more robust transmission networks and storage solutions to equilibrate supply and demand.
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The battery systems may be set up at renewable energy production sites or other areas deemed crucial for grid adaptability. As per the Cabinet announcement, these measures aim to tackle intermittency, transmission congestion, peak-hour limitations, and demand during hours without solar energy. The government stated the corridor will facilitate the evacuation of up to 135 GW of renewable energy across states and Union Territories.
Vaishnaw's presentation stated that India aims for 500 GW of non-fossil fuel capacity by 2030 and is preparing for approximately 786 GW by 2035-36. The Cabinet announcement noted that the initiative would aid in achieving the long-term goal of 900 GW of installed non-fossil capacity by 2035.
India's swiftly growing solar capacity is already heightening the demand for supportive grid infrastructure. As per an official PIB backgrounder, by June 30, 2026, India's installed solar capacity had increased to 162.15 GW, a rise from approximately 3 GW in 2014.
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In GEC-III, all new or greenfield intra-state transmission projects will be allocated through tariff-based competitive bidding. Transmission service providers chosen through the bidding process will construct, possess, manage, and uphold the assets, whereas State Transmission Utilities will serve as the primary implementing agencies.
Enhancement and fortification of current, or brownfield, transmission networks will be performed on a cost-plus basis. The government announced that the central funding would aid in reducing intra-state transmission fees and lessen their effect on electricity prices for consumers.
The initiative also represents a substantial enlargement of India's Green Energy Corridor project, which was initially intended to enhance transmission systems in regions with great renewable energy capabilities.
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As renewable generation grows at a quicker pace, the emphasis is increasingly moving from just building generation capacity to guaranteeing that electricity can be transmitted, stored, and provided when required.