Green Energy Corridor Phase-III (GEC-III) Scheme

Syllabus: GS3/Renewable Energy/Infrastructure

Context

• Renewables, especially solar and wind power, have transformed the country’s energy basket, but their variability places new demands on transmission planning and storage.

About the (GEC-III) Scheme

• With more than 300 GW of installed capacity, India ranks third globally in renewable-energy (RE) deployment.
  • This growth has not translated into green energy being available when demand is highest, particularly during the evening peak. 
• The Centre’s Green Energy Corridor Phase-III scheme, approved recently, tries to address this constraint.
• Green Energy Corridor Phase-III (GEC-III) Scheme: It provides for the deployment of 50 GWh of Battery Energy Storage Systems (BESS) at the Renewable Energy (RE) developer/generator end or any other location of importance.
  • The scheme is targeted to be set up by FY 2032-33 for the development of Intra-State Transmission Systems (InSTS).
  • The grid flexibility will address intermittency, congestion, peak-hour curtailment, and meet non-solar-hour demand. 
  • All Greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB) mode.
• Significance: 
  • The scheme will help in achieving the target of 900 GW installed Non-Fossil capacity by 2035.
  • It is expected to address intermittency during peak hours and meet demand when the Sun is not shining.
  • The emphasis on intra-state networks is particularly significant as the renewable projects are often concentrated in specific regions while demand is spread across cities, industries and rural areas within states. 

Electricity Transmission

• Electricity generated at a power plant has to travel through transmission lines before reaching distribution networks and ultimately consumers.
  • The basic chain is: From Renewable Energy Project to Transmission Network to Distribution Network and ultimately to Consumers.
• India’s solar and wind capacity has expanded rapidly, but transmission infrastructure in some renewable-rich regions has not kept pace.
  • This is particularly important because India’s major renewable-energy resources are concentrated in specific regions.

Current Infrastructure for Grid Transmission

• General Network Access (GNA) Framework: It is a temporary arrangement that allows renewable energy plants to use whatever spare transmission capacity is available while they wait for their permanent transmission connection.
  • T-GNA projects, however, can schedule power only if spare transmission capacity is available. 
• Concerns: During periods of network congestion, long-term GNA projects receive priority, often resulting in curtailment of generation from T-GNA-connected plants.
  • The curtailment faced by these projects are as high as 70-80%  of their generating capacity, posing serious concern on project viability and debt servicing.
• When the grid cannot accommodate all the electricity being generated, power generation may have to be deliberately reduced. This is known as power curtailment.

Why are Transmission Projects Taking Time?

• Transmission infrastructure is more complicated and time-consuming to develop than generation capacity.
• Major challenges include:
  • Land acquisition and Right of Way (RoW) issues.
  • Obtaining environmental and other statutory clearances.
  • Delays in construction of transmission lines and substations.
  • Procurement of specialised equipment.
  • Coordination between renewable-energy developers, transmission companies and governments.
  • Mismatch between the commissioning dates of renewable projects and transmission infrastructure.
• This creates a situation where a renewable-energy project may be ready to generate electricity while its dedicated transmission system is still under construction.

Need for the Grid Infrastructure: 

• Power Curtailment: Insufficient transmission capacity can force renewable-energy plants to reduce generation, resulting in wastage of clean electricity.
• Financial Stress: Curtailment reduces revenue for renewable-energy developers, making it difficult to service project debt and potentially discouraging future investment.
• Grid Stability: The intermittent nature of solar and wind power, combined with inadequate transmission and storage, can create challenges in maintaining grid stability and balancing electricity supply and demand.
• Delay in Renewable Targets: Transmission bottlenecks can slow the effective utilisation of India’s rapidly expanding renewable capacity, potentially affecting the achievement of its 2030 clean-energy and climate targets.

Government Initiatives

• Grid Integration Plan: India’s grid is being reimagined through the ₹2.4 lakh crore Transmission Plan for 500 GW, linking renewable-rich states with demand centres.
  • The Government is prioritizing investment in transmission infrastructure through the Green Energy Corridors and new high-capacity transmission lines from Rajasthan, Gujarat, and Ladakh. 
  • While these projects are multi-year efforts, once operational they will unlock over 200 GW of new renewable capacity. 
• Vision till 2032: Government has already planned for building High-Voltage Direct Current (HVDC) corridors and boosting inter-regional transmission capacity from 120 GW today to 143 GW by 2027, and 168 GW by 2032.
• Incentives: Domestic manufacturing, incentivised through the Production-Linked Incentive (PLI) scheme, Domestic Content Requirement, imposition of duties, and duty exemptions for capital equipment, is reducing import dependency.
• National Institute of Solar Energy (NISE): Offers training programs, workshops, and research support for solar PV, solar thermal, and hybrid technologies.
• Capacity Building for State Nodal Agencies (SNAs): Training and technical support to state renewable energy agencies for project implementation, monitoring, and policy enforcement.
• Research & Innovation Support: Funding for R&D in battery storage, hybrid projects, offshore wind, and green hydrogen.
• International Cooperation & Training Programs: Collaboration with IRENA, GIZ, and other global agencies for knowledge exchange.
• Deployment of Smart Grid Technologies: Advanced grid support technologies are planned to enhance voltage stability, improve system strength, and support reliable integration of renewable energy.

Conclusion

• Over the past two years, policy attention has consciously shifted from pure capacity growth to system design.
• These reforms mark a decisive step toward optimising transmission utilisation and fast-tracking stranded renewable projects, directly addressing one of the sector’s core implementation challenges.
• The new corridor could be the backbone of the next phase of India’s green energy transition. 

Source: IE