Cabinet Clears Green Energy Corridor Phase-III With 50 GWh Storage

The Union Cabinet, chaired by the Prime Minister, approved the Green Energy Corridor Phase-III scheme, shortened to GEC-III. The scheme strengthens the Intra-State Transmission System (InSTS) so that as much as 135 Gigawatt of renewable power can be carried out of generating sites and into the grid within states and union territories. The Ministry of New and Renewable Energy steers the scheme.

Storage is built into the scheme

Alongside wires, GEC-III pays for 50 GWh of Battery Energy Storage Systems (BESS), placed at the renewable developer or generator end or at any other spot that matters for keeping the grid flexible. Storage is meant to answer four familiar problems of solar and wind power: supply that comes and goes, congestion on the network, power curtailed at peak hours, and demand during the hours when the sun is not shining.

What the scheme costs

The target for completion is financial year 2032-33. Central Financial Assistance offsets intra-state transmission charges, which is how the government expects the scheme to hold down the price of power for the household at the end of the line.

How the work will be awarded

Every greenfield project under the transmission component goes through Tariff Based Competitive Bidding, abbreviated as TBCB. Brownfield upgrades and works that strengthen an existing network are handled on a Cost Plus Basis. State Transmission Utilities are the overall implementing agency, while Transmission Service Providers bid under TBCB on a Build-Own-Operate-Maintain model, known by the initials BOOM.

Why it matters for the climate target

The scheme is expected to help India reach an installed non-fossil capacity of 900 GW by 2035. The government also expects gains in long-term energy security and a smaller carbon footprint, together with direct and indirect jobs in power, manufacturing and construction. Making and installing batteries should add work in the domestic energy storage industry, and running, maintaining and managing the new grid assets should create lasting skilled employment in the states that take part.