The government on Wednesday approved the Rs 1.86 lakh crore Green Energy Corridor Phase-III (GEC-III) scheme to facilitate the evacuation of up to 135 GW of renewable energy across states and Union Territories by 2032-33. The government said the scheme would strengthen the intra-State transmission system (InSTS) and help integrate increasing renewable power into the national grid.
Under the scheme, Rs 1,36,378 crore out of the total outlay of Rs 1,86,405 crore will be spent on developing intra-State transmission systems, while Rs 50,000 crore will be used to deploy 50 GWh of Battery Energy Storage Systems (BESS).
The government will provide Central Financial Support of Rs 54,082 crore under the scheme. The assistance will help offset intra-State transmission charges and keep electricity costs down, benefiting consumers, according to the government.
The BESS will be deployed at renewable energy developer or generator sites, or at other locations considered important for grid flexibility. The storage systems will help address the intermittent nature of renewable power, transmission congestion and peak-hour curtailment, besides meeting electricity demand during non-solar hours.
The scheme will facilitate the integration and evacuation of renewable power within states and Union Territories and is expected to support India’s target of achieving 900 GW of installed non-fossil fuel capacity by 2035.
All greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB), while brownfield upgrades and network-strengthening works will be executed on a Cost Plus Basis (CPB).
State Transmission Utilities will be the overall implementing agencies, while Transmission Service Providers will participate in projects awarded through TBCB on a Build-Own-Operate-Maintain (BOOM) model.
The government said the scheme would contribute to India’s long-term energy security and help reduce its carbon footprint. It is also expected to generate direct and indirect employment in the power, manufacturing and construction sectors.
The deployment and manufacturing of BESS will create jobs in the domestic energy storage industry, while the expansion of the transmission network will generate skilled employment in operations, maintenance and grid management.