Green Energy Corridor III: Renewable Energy Transmission

Green Energy Corridor III Strengthens Renewable Energy Transmission

Source: Indian Energy
GS III: Infrastructure, Energy, Environment and Climate Change

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Why in the News?

The Union Cabinet has approved the third phase of the Green Energy Corridor (GEC-III) with an estimated outlay of rupees 1.86 lakh crore.

News in Brief

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• GEC-III will develop transmission infrastructure to integrate large-scale solar and wind power into the national grid.
• The scheme includes a dedicated 50 GWh Battery Energy Storage System (BESS) component to manage fluctuations in renewable generation.
• Around ₹1.36 lakh crore has been earmarked for intra-state transmission systems (InSTS), while ₹50,000 crore is allocated for BESS.
• GEC-III is expected to support renewable power evacuation at the state level and increase private-sector participation in transmission projects.

Key Highlights

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Addressing the renewable energy bottleneck

• India’s renewable capacity is expanding rapidly, but transmission infrastructure has not always kept pace.
• This can lead to grid congestion and curtailment, where renewable electricity is generated but cannot be evacuated because adequate transmission capacity is unavailable.
• GEC-III seeks to bridge this gap by creating dedicated transmission networks for renewable-energy-rich regions.

Battery Energy Storage Systems

• For the first time, GEC includes a dedicated energy-storage component.
  • 50 GWh of BESS will be deployed.
  • Storage can absorb surplus electricity during periods of high renewable generation and release it when generation falls.
  • This can improve grid stability, flexibility and reliability.

Funding pattern

• The scheme has a total outlay of rupees 1.86 lakh crore.
• Major allocation for infra-state transmission systems.
• Dedicated funding for Battery Energy Storage Systems (BESS)
• Central Financial Assistance (CFA) to offset intra-state transmission charges and reduce the burden on consumers.

Implementation Model

• Under the Intra-State Transmission System (InSTS) component;
  • Greenfield projects will be implemented through Tariff-Based Competitive Bidding (TBCB).
  • Brownfield upgrades and network strengthening works will be undertaken on a cost-plus basis.
  • Under TBCB, private transmission companies can develop and operate projects through competitive bidding.
• State transmission utilities will also participate in implementation.

Expanding transmission capacity

• India is expected to add around 400 GW of renewable energy capacity between 2030 and 2035–36, requiring nearly 160 GW of additional InSTS infrastructure.
• GEC-III is expected to support about 135 GW of infrastructure creation at the state level.
• The scheme will also encourage private-sector participation in state-level transmission infrastructure.

Geographical expansion

• GEC-I was implemented across eight states, while GEC-II covered seven states.
• GEC-III is expected to expand the geographical coverage further, with proposals received from at least 13 states.

Implementation timeline

• GEC-I: Expected to be completed by March 2027.
• GEC-II and GEC-III projects: Expected to be completed by 2028.
• A Cabinet Secretary-level steering committee will monitor the progress of GEC-II and GEC-III twice a year.

Major challenge: Transmission constraints

• Transmission constraints remain a major obstacle to renewable-energy evacuation.
• During FY26, around 6,900 GWh of clean electricity reportedly faced restrictions because transmission infrastructure could not keep pace with the rapid addition of renewable capacity and commissioning of associated transmission projects.

Significance and Challenges for India

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• GEC-III is important because India’s energy transition is no longer only about adding renewable capacity; it also requires the infrastructure to transmit, store and integrate that electricity into the grid.
• By combining transmission expansion with battery storage, the scheme can reduce renewable-energy curtailment, improve grid stability and support India’s broader clean-energy transition.

Challenges

• Transmission infrastructure may continue to lag behind rapid renewable-capacity addition.
• Large-scale projects face land, regulatory and implementation delays.
• Coordination between Centre, states and transmission agencies is essential.
• Storage systems involve significant investment and require efficient utilisation.
• Timely commissioning of generation and transmission assets must be synchronised.

Way Forward and Conclusion

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India needs to plan renewable generation, transmission and energy storage together to avoid grid congestion and power curtailment. Faster project execution, better Centre–State coordination, private-sector participation and wider adoption of storage technologies can make the power grid more flexible and reliable.

GEC-III can therefore play an important role in ensuring that India’s growing renewable capacity is effectively integrated into the national grid. Strengthening transmission alongside storage will be crucial for achieving a reliable, affordable and sustainable energy transition.

UPSC Prelims and Mains Practice Question

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Consider the following statements regarding Green Energy Corridor-III:
1. It aims to facilitate the evacuation of up to 135 GW of renewable energy.
2. It includes a dedicated provision for 50 GWh of Battery Energy Storage Systems.
3. All transmission projects under the scheme will be implemented only by State transmission utilities.
Which of the statements given above is/are correct?

A) 1 and 2 only

B) 2 and 3 only

C) 1 and 3 only

D) 1,2 and 3

Mains Practice Question

Q) India’s renewable-energy transmission is increasingly constrained by transmission and storage infrastructure rather than generation capacity alone. Discuss the significance of Green Energy Corridor -III in addressing this challenge. (250 words)

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