The union cabinet, chaired by the Prime Minister approved the Green Energy Corridor Phase-III (GEC-III) scheme to strengthen India’s Intra-State Transmission System (InSTS). The initiative will support the evacuation of up to 135 GW of renewable energy across States and Union Territories. The scheme will also accelerate the integration of renewable power into the national grid while strengthening transmission infrastructure within participating States and Union Territories.
50 GWh Battery Storage to Support Grid Flexibility
Alongside transmission infrastructure, GEC-III will deploy 50 GWh of Battery Energy Storage Systems (BESS). The Government will install these systems at renewable energy developer or generator sites, or at other strategically important locations. The battery storage capacity will help address key challenges associated with renewable energy, including intermittency, transmission congestion and peak-hour curtailment. In addition, BESS will help meet electricity demand during non-solar hours and improve overall grid flexibility.
₹1.86 Lakh Crore Project Outlay
The Government plans to implement the GEC-III scheme by FY 2032–33 with a total project outlay of ₹1,86,405 crore. The investment includes:
₹1,36,378 crore for developing Intra-State Transmission Systems under GEC-III.
₹50,000 crore for deploying 50 GWh of Battery Energy Storage Systems.
₹54,082 crore in total Central Financial Support.
Furthermore, the Central Financial Assistance will help offset Intra-State transmission charges and, consequently, contain the cost of electricity. This support is expected to benefit end users by helping keep power costs lower.
Competitive Bidding for Greenfield Projects
The government will implement all greenfield Intra-State transmission projects through Tariff-Based Competitive Bidding (TBCB). Meanwhile, brownfield upgrades and network-strengthening works will follow the Cost Plus Basis (CPB). State Transmission Utilities will serve as the overall implementing agencies. Under the TBCB model, Transmission Service Providers will participate through a Build-Own-Operate-Maintain (BOOM) framework.
Supporting India’s Renewable Energy Goals
GEC-III will contribute to India’s target of achieving 900 GW of installed non-fossil fuel capacity by 2035. By expanding transmission capacity and integrating battery storage, the scheme will support the increasing share of renewable energy in the electricity mix. Moreover, the initiative is expected to strengthen India’s long-term energy security and promote more sustainable economic growth by supporting the transition towards lower-carbon power generation.
Boosting Jobs and Domestic Energy Storage
The scheme will also create direct and indirect employment across the power, manufacturing and construction sectors. In particular, the deployment and manufacturing of Battery Energy Storage Systems will support growth in India’s domestic energy storage industry. As reported by pmindia.gov.in, the expansion of transmission infrastructure will create long-term skilled employment opportunities in operations, maintenance and grid management across participating States and Union Territories.
