Scheme for Intra-State Transmission System for Green Energy Approved by Indian Government

The Indian government has approved the Green Energy Corridor Phase-III (GEC-III) scheme to facilitate grid integration and power evacuation across India’s States and Union Territories (UTs).

This historic initiative will strengthen India’s Intra-State Transmission System (InSTS) to evacuate up to 135 gigawatts (GW) of renewable energy nationwide.

The scheme also provides for the deployment of 50 GWh of Battery Energy Storage Systems (BESS) at the Renewable Energy (RE) developer/generator end or at other locations important for grid flexibility to address intermittency, congestion, peak-hour curtailment, and meet non-solar-hour demand.

The scheme is targeted to be set up by FY 2032-33 with a total project outlay of Rs.1,86,405 crore, comprising Rs.1,36,378 crore for the development of Intra-State Transmission Systems (InSTS) under GEC-III and Rs.50,000 crore for 50 GWh of Battery Energy Storage Systems (BESS).

The Scheme involves total Central Financial Support of Rs. 54,082 crore, which will help offset intra-state transmission charges and keep power costs down. Thus, the Government support will ultimately benefit the end users – the citizens of India.

All Greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB) mode, while brownfield upgradation and network strengthening works will be executed under Cost Plus Basis (CPB).

The State Transmission Utilities will be the overall implementing agency, and Transmission Service Providers (TSPs) will participate under TBCB on a Build-Own-Operate-Maintain (BOOM) model.

The scheme to develop the Green Energy Corridor will help achieve the target of 900 GW of installed Non-Fossil capacity by 2035, contribute to the country’s long-term energy security and promote ecologically sustainable growth by reducing the carbon footprint.

The scheme will also generate long-term skilled employment in operation, maintenance, and grid management across participating States. It will also generate large direct and indirect employment in the power sector, manufacturing, and construction industries.

Battery Energy Storage System (BESS) manufacturing and deployment will additionally generate employment in the domestic energy storage industry.