The Union Cabinet has approved the Green Energy Corridor Phase-III (GEC-III) scheme to upgrade India’s intra-state electrical transmission networks and add large-scale battery storage capacity. The Ministry of New and Renewable Energy is leading the initiative, which aims to support India’s transition to renewable energy by making it easier to move wind and solar power from generators to consumers across state boundaries.
The scheme will enable the transmission of up to 135 Gigawatt of renewable energy capacity and deploy 50 Gigawatt-hour of Battery Energy Storage Systems to stabilise the electricity grid and manage supply when the sun is not shining or wind is not blowing.
Key facts
- Total project outlay: Rs 1,86,405 crore
- Central Government financial support: Rs 54,082 crore
- Transmission infrastructure cost: Rs 1,36,378 crore
- Battery storage cost: Rs 50,000 crore
- Target completion: FY 2032-33
- Renewable energy transmission capacity: 135 Gigawatt
- Battery storage deployment: 50 Gigawatt-hour
- Implementing agency: State Transmission Utilities
What the scheme will do
GEC-III focuses on two main components. The first strengthens intra-state transmission systems (InSTS), the networks that move power within individual states. The second deploys battery storage at renewable energy generation sites or other important grid locations to address the key challenge of renewable energy: it is available only when the sun shines or wind blows, not when consumers need it most.
The battery systems will handle multiple grid problems. They will reduce power loss and congestion on transmission lines, manage peak-hour curtailment (when excess power generation cannot be absorbed), and ensure electricity availability during non-solar hours when demand remains high but solar generation has stopped.
How the scheme will be implemented
State Transmission Utilities will oversee implementation. New transmission projects will use Tariff Based Competitive Bidding, allowing private Transmission Service Providers to build, own, operate and maintain assets under a fixed contract. Existing transmission upgrades and network improvements will follow a Cost Plus model where actual costs are reimbursed with a fixed margin.
The government’s financial contribution will offset intra-state transmission charges, keeping electricity costs lower for consumers. This support makes renewable energy more affordable for end users.
Connection to national renewable energy targets
This scheme directly supports India’s commitment to install 900 Gigawatt of non-fossil fuel energy capacity by 2035. Without adequate transmission and storage infrastructure, renewable projects cannot deliver their full potential, as generators have no way to evacuate power and grids cannot handle the variable supply. GEC-III addresses this bottleneck.
Employment and industrial benefits
The scheme is expected to create jobs across multiple sectors. Construction and manufacturing will see immediate employment during the infrastructure build-out phase. The power sector itself will gain long-term jobs in operation and maintenance of transmission assets and battery systems. The domestic energy storage industry will expand as manufacturing capacity grows to meet the 50 GWh deployment target. Skilled employment will also emerge in grid management and operational roles across states.
What this means for you
Citizens will benefit from lower electricity bills as government support reduces transmission costs. The scheme strengthens energy security by enabling more renewable power to reach homes and businesses reliably, reducing dependence on imported fossil fuels. States with large renewable energy potential, such as Rajasthan, Gujarat, Tamil Nadu and Himachal Pradesh, will see accelerated renewable capacity development and grid modernisation. Job seekers in the energy and infrastructure sectors will find new employment opportunities. The scheme also reduces the nation’s carbon footprint, contributing to environmental goals.
What happens next
The scheme targets completion by the financial year 2032-33. State Transmission Utilities will begin planning and bidding processes for new transmission projects and brownfield upgrades. The Battery Energy Storage System deployment will roll out in phases to support renewable integration as transmission infrastructure develops.