The Union Cabinet has approved the Green Energy Corridor Phase-III (GEC-III) scheme with a total outlay of Rs 1,86,405 crore, aimed at strengthening India’s intra-state electricity transmission infrastructure and integrating more renewable energy into the power grid. The scheme is targeted for completion by financial year 2032-33.
The initiative is designed to facilitate the evacuation of up to 135 GW of renewable energy across states and Union Territories. It also marks the first Green Energy Corridor phase to include a dedicated large-scale battery energy storage component.
Rs 50,000 Crore Allocated for Battery Storage
Under the scheme, Rs 1,36,378 crore will be allocated for developing intra-state transmission systems, while Rs 50,000 crore will support the deployment of 50 GWh of Battery Energy Storage Systems (BESS).
The battery storage systems can be deployed at renewable energy generation sites or other locations considered important for grid flexibility. The storage capacity is intended to help manage fluctuations in renewable power generation and improve the reliability of electricity supply.
According to the government, the battery component will help address renewable-energy intermittency, transmission congestion and peak-hour curtailment while supporting electricity demand during non-solar hours.
Scheme to Strengthen Intra-State Transmission
A major objective of GEC-III is to expand and modernise transmission infrastructure within states. This will help electricity generated from solar, wind and other renewable sources reach demand centres more efficiently.
The government has announced Central Financial Support of Rs 54,082 crore for the programme. According to the Centre, the financial assistance will help offset intra-state transmission charges and could help keep electricity costs lower for consumers.
The scheme is therefore focused not only on generating more renewable power but also on ensuring that the electricity can be transported and integrated into the grid.
Addressing Renewable Energy Curtailment
The expansion of renewable energy has created new challenges for India’s power transmission network. Renewable generation, particularly solar power, is often concentrated in specific regions, while electricity demand is spread across the country.
Transmission constraints can result in renewable power being curtailed even when generating capacity is available. According to government data cited by the Indian Express, around 6,900 GWh of clean electricity faced restrictions during FY2025-26 because of mismatches between renewable-energy deployment and transmission infrastructure.
Battery storage can help address some of these challenges by storing electricity when generation is high and making it available when demand rises or renewable generation falls.
Supporting India’s Renewable Energy Expansion
The new scheme comes as India continues to expand its renewable-energy capacity and strengthen the electricity grid needed to support that growth.
The government has been developing Green Energy Corridors in phases to connect renewable-energy generation centres with consumption areas. Earlier phases focused primarily on strengthening transmission networks, while GEC-III adds substantial battery storage capacity to improve grid flexibility.
The initiative is also aligned with India’s broader plans to integrate more than 500 GW of non-fossil fuel capacity by 2030.
Importance of Battery Energy Storage
Battery storage is becoming increasingly important as the share of solar and wind power in India’s electricity mix rises. Unlike conventional power plants, renewable sources such as solar and wind can vary depending on weather and time of day.
Storage systems can help balance these fluctuations by absorbing excess electricity and releasing it when required. This can improve grid stability and reduce pressure on transmission networks during periods of high renewable generation.
The government’s decision to include 50 GWh of BESS in GEC-III therefore adds an important flexibility component to the transmission programme.
Implementation Planned Through 2032-33
The Green Energy Corridor Phase-III is scheduled to be implemented by FY2032-33. New transmission infrastructure and storage projects will be developed as part of the broader effort to strengthen India’s electricity network.
The programme will require coordination between the Centre, state governments, transmission agencies, renewable-energy developers and other stakeholders.
As renewable capacity continues to expand, timely development of transmission and storage infrastructure will be important for ensuring that clean electricity can be integrated into the grid efficiently.
Focus on a More Flexible Power Grid
The approval of the Rs 1.86 lakh crore GEC-III scheme represents a major expansion of India’s renewable-energy transmission infrastructure. By combining intra-state transmission development with 50 GWh of battery storage, the programme seeks to address both the movement and management of renewable electricity.
With the scheme targeting 135 GW of renewable-energy evacuation capacity, its implementation will be closely linked to India’s wider efforts to expand clean energy while maintaining a stable and reliable electricity grid.