India Clears Rs 1.86 Lakh Crore Green Energy Corridor Scheme With Battery Storage

The Union Cabinet on Wednesday approved the Green Energy Corridor Phase-III (GEC-III) scheme with a total outlay of Rs 1,86,405 crore. The scheme will strengthen intra-state transmission systems and enable the evacuation of up to 135 GW of renewable energy across states and Union Territories. It is targeted for completion by FY 2032-33.

The scheme also introduces a dedicated battery energy storage component to the Green Energy Corridor programme for the first time. It provides for 50 GWh of Battery Energy Storage Systems (BESS), which can be deployed at renewable energy developer or generator sites or other locations important for grid flexibility.

Of the total outlay, Rs 1,36,378 crore has been earmarked for developing intra-state transmission systems under GEC-III, while Rs 50,000 crore will support the deployment of 50 GWh of BESS. The scheme includes total Central Financial Support of Rs 54,082 crore.

According to the government, battery storage will help address intermittency in renewable generation, transmission congestion and peak-hour curtailment. It will also support electricity demand during non-solar hours, when solar generation is unavailable.

The government said the Central Financial Assistance will help offset intra-state transmission charges and keep power costs lower for consumers. Under the transmission component, greenfield projects will be implemented through Tariff Based Competitive Bidding, while brownfield upgrades and network-strengthening work will follow the Cost Plus Basis.

State Transmission Utilities will serve as the overall implementing agencies. Transmission Service Providers will participate through competitive bidding under a Build-Own-Operate-Maintain model.

The scheme is also intended to support the government’s target of 900 GW of installed non-fossil fuel capacity by 2035. The government expects the programme to generate employment in the power, manufacturing and construction sectors, as well as in the domestic energy-storage industry.

Implementation of GEC-III will continue through FY 2032-33 as states and Union Territories develop and strengthen transmission infrastructure for renewable power.

The addition of 50 GWh of battery storage gives the Green Energy Corridor programme a dedicated mechanism for managing fluctuations in renewable generation and improving grid flexibility. The transmission and storage components are expected to work together to support greater integration and evacuation of renewable electricity.