The Cabinet has approved the Rs. 1.86 tn Green Energy Corridor Phase 3 scheme, aimed at enabling the evacuation of up to 135 GW of renewable energy across states and Union Territories by 2032-33. The programme will strengthen intra-State transmission systems and support the integration of rising renewable power into the national grid.

Of the total outlay, Rs. 1.36 tn will be spent on developing intra-State transmission systems, while Rs. 500 bn will fund the deployment of 50 GWh of Battery Energy Storage Systems (BESS). The government will provide Central Financial Support of Rs. 540.82 bn to offset intra-State transmission charges and help keep electricity costs lower for consumers.

The storage systems will be installed at renewable energy developer and generator sites, as well as other locations considered important for grid flexibility. They will help manage the intermittent nature of renewable power, ease transmission congestion and reduce peak-hour curtailment. The systems will also support electricity demand during non-solar hours and improve the reliability of power supply.

The scheme will facilitate renewable power integration and evacuation within states and Union Territories, supporting India’s target of 900 GW of installed non-fossil fuel capacity by 2035. Greenfield projects under the intra-State transmission component will be implemented through Tariff Based Competitive Bidding, while brownfield upgrades and network-strengthening works will use a Cost Plus Basis.

State Transmission Utilities will serve as the overall implementing agencies. Transmission Service Providers will participate in competitively awarded projects through a Build-Own-Operate-Maintain model. The government said the programme would strengthen long-term energy security, reduce the country’s carbon footprint and generate direct and indirect employment in power, manufacturing, construction, operations, maintenance and grid management.