The Union Cabinet, chaired by Prime Minister Shri Narendra Modi , has approved Phase III of the Green Energy Corridor (GEC-III). This landmark initiative will strengthen India's Intrastate Transmission System (InSTS) to enable the evacuation of up to 135 gigawatts (GW) of renewable energy between the Union States and Territories.
The program also envisions the deployment of 50 GWh of battery energy storage systems (BESS) at renewable energy (RE) developer/generator facilities or other locations deemed important for grid flexibility. This will address intermittency, congestion, reduced peak demand, and meet demand during periods of low solar power availability. The program will facilitate grid integration and energy evacuation within Indian states and territories.
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The program is scheduled for implementation in fiscal year 2032-33, with a total budget of 186.405 billion rupees , of which 136.378 billion will be allocated to the development of Intrastate Transmission Systems (InSTS) under GEC-III, and 50 billion rupees to 50 GWh of Battery Energy Storage Systems (BESS) . The program has total central financial support of 54.082 billion rupees. This central financial assistance will help offset intrastate transmission costs and, consequently, keep electricity prices low. Thus, government support will ultimately benefit end users: the citizens of India.
All InSTS component greenfield projects will be implemented through tariff-based competitive bidding (TBCB), while existing facility modernization and network strengthening works will be carried out under the cost-plus-margin (CPB) model. State-owned transmission companies will be the overall implementing agency, and transmission service providers (TSPs) will participate under TBCB in a build-own-operate-maintain (BOOM) model.
This program will contribute to achieving the goal of 900 GW of installed non-fossil energy capacity by 2035. It will also contribute to the country's long-term energy security and promote environmentally sustainable growth by reducing the carbon footprint. It will generate a large number of direct and indirect jobs in the energy, manufacturing, and construction sectors. The manufacturing and implementation of battery energy storage systems (BESS) will also create jobs in the domestic energy storage industry. The program will also generate long-term, skilled jobs in the areas of operation, maintenance, and management of the electrical grid in the participating states.