Cabinet gives green signal to Green Energy Corridor III

New Delhi: The Cabinet on Wednesday approved a scheme with a project outlay of ₹1.86 lakh crore to help states develop transmission corridors for green energy by laying new lines or upgrading the existing network, and build battery storage systems. The scheme involves a central financial support of ₹54,082 crore.

The Green Energy Corridor phase III scheme, the latest of the government programmes to build transmission infrastructure for green energy, will run until FY33 and has a massive increase in the project outlay from the previous rounds. The first such corridor scheme had an outlay of about ₹10,141 crore.

Tariff-based competitive bidding


The second had ₹20,774 crore outlay. "The Cabinet decision on the Green Energy Corridor Phase-III will ensure 135 GW renewable energy evacuation, 50 GWh battery storage, stronger power grids across states...Big push towards 900 GW non-fossil capacity by 2035," Prime Minister Narendra Modi wrote on X.

Also read: Cabinet approves Rs 1.86 lakh crore electricity grid upgrade scheme

Under this programme, renewable energy developers will also get support for setting up battery energy storage projects of 50 GWh capacity. For this, the scheme has earmarked Rs 6,000 crore through viability gap funding from the total central financial assistance.

The scheme envisages total investments of Rs1.36 lakh crore for the development of intra-state transmission systems and Rs 50,000 crore for 50 GWh of battery energy storage projects.

Information and broadcasting minister Ashwini Vaishnaw said new transmission lines would be awarded through tariff-based competitive bidding, with transmission service providers building, owning, operating and maintaining the assets.

Managing the high variations in renewable energy, like solar and wind, is a "major challenge", he said after the Cabinet meeting.