Green Energy Corridor Scheme for Development of Intra-State Transmission System

Syllabus: GS3/Economy,Environment 

In News

The Union Cabinet has approved the Green Energy Corridor Phase-III (GEC-III) scheme to strengthen India’s Intra-State Transmission System (InSTS) and facilitate the evacuation of up to 135 GW of renewable energy across States and Union Territories.

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

• The scheme is targeted to be set up by FY 2032-33 with total project outlay of Rs.1,86,405 crore.
• It comprises Rs.1,36,378 crore for the development of Intra-State Transmission Systems (InSTS) under GEC-III, Rs.50,000 crore for 50 GWh of Battery Energy Storage Systems (BESS). 
• It will strengthen India’s Intra-State Transmission System (InSTS) to enable evacuation of up to 135 Gigawatts (GW) of renewable energy across States/ Union Territories.

Features 

• 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 for grid flexibility to address intermittency, congestion, peak-hour curtailment, and meet non-solar-hour demand. 
• It will facilitate grid integration and power evacuation within the States/UTs of India.
• It includes Central Financial Support of Rs 54,082 crore, which will help offset intra-state transmission charges and help keep power costs down for end users.
• All Greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB) mode
• 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.

Progress

• The Ministry of New and Renewable Energy (MNRE) is implementing the Green Energy Corridor (GEC) in two phases to augment transmission lines and transformation capacity through intra-state transmission (InSTS) and inter-state transmission (ISTS) networks.
  •  However, a parliamentary panel has previously flagged delays in the scheme’s implementation.
• According to government data, under GEC Phase-I, being implemented across eight states — Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Tamil Nadu — 9,130 circuit kilometres (ckm) of transmission lines had been constructed as of June 30 against the target of 9,461 ckm.
• Under GEC Phase-II, which is being implemented in seven states — Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh — the target is to add 7,863 ckm of transmission lines and 24,388 MVA of substation capacity. 

Importnace 

• Energy security: Green Energy Corridor will support the target of achieving 900 GW of installed non-fossil capacity by 2035.
  • It is also expected to contribute to long-term energy security and promote sustainable growth by reducing the carbon footprint.
• Renewable Integration and Grid Resilience:  The corridor strengthens the intra-state transmission system to tackle the bottlenecks at the state borders and allows smooth flow of power from far solar & wind sources to the local distribution grid.
• System Stability and Storage: Battery Energy Storage Systems (BESS) of 50 GWh will store excess energy at peak and release during high demand
  • It will help address challenges related to renewable energy intermittency, transmission congestion, and peak-hour curtailment, while supporting electricity demand during non-solar hours.
• Decrease consumer electricity rates: It has released Rs. 54,082 crore as Central Financial Assistance (CFA) for reduction of capital cost of State Transmission Utilities, which leads to lower retail power costs for customers.
• Private sector efficiency: Build-Own-Operate-Maintain (BOOM) model under Tariff-Based Competitive Bidding (TBCB) for greenfield projects brings transparency, cost optimisation, and innovation from the private sector in energy infrastructure building.
• Socio-Economic and Environmental Benefits:Construction of high-voltage transmission lines, substations, and BESS complexes will offer massive direct and indirect employment possibilities and speed up India’s march toward net-zero carbon emissions.

Challenges 

• Land acquisition issues : Substantial risk of cost and time overruns due to delays in administration and local reluctance to build electrical lines on agricultural and forest holdings.
• Financial vulnerability of DISCOMs: State Electricity Distribution Companies (DISCOMs) are financially vulnerable and may delay payments to Transmission Service Providers (TSPs) even with Central subsidies.
• Supply Chain Constraints: Critical mineral (lithium, cobalt) and specialist power equipment supply chains are highly variable and subject to international supply chain hazards for the deployment of network and battery storage.
• Technical and Integration Issues:  Large volumes of intermittent renewable energy cannot be integrated with existing infrastructures without smart-grid technologies, advanced forecasting and dispatch technology, and expert workers.

Conclusion 

The Green Energy Corridor Phase-III (GEC-III) is a significant move toward India’s energy security and shift to renewable energy. It combines 135 GW of renewable-energy evacuation capacity with 50 GWh of battery storage to relieve transmission bottlenecks and renewable intermittency while increasing the grid’s flexibility and reliability. Its success depends on timely implementation, good management of land, reform of State utilities, local supply-chain skills, technology readiness and Centre-State coordination. Overcoming these challenges, GEC-III will empower India to realise its objectives of energy independence, sustainable development and long-term decarbonisation.

Source:TH