Budget 2025: Green energy corridor set to enter phase III

Budget 2025: The government may announce the third phase of the Green Energy Corridor project in the upcoming budget, said people familiar with the matter. GEC-III, details of which are being finalised, will seek to facilitate evacuation of renewable power to ensure supply for industries such as green hydrogen and steel. This is part of the government's strategy to further enhance renewable energy capabilities.

"The plan is under discussion. Besides augmenting capacity, the focus is to be future-ready for green products that may require dedicated green energy lines," said a senior government official.

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The Central Electricity Authority-the planning body for the power sector-is working with states, which have been asked to submit their proposals, to be collated and finalised by the Centre.

"Evacuating electricity from pockets that are rich in green energy to places which are the load centres and those that are likely to come up in the future-say data centres or green hydrogen (industry)-is what the green energy corridor will be for," a second official said.

The new phase of the green energy corridor will focus on high-voltage direct current transmission lines, considered the future of energy supply.

GEC-III has been on the wish list of the industry as well. Avaada Group chairman Vineet Mittal, in his statement on budget expectations last week, said the rollout of the third phase is crucial, especially in renewables-rich states such as Rajasthan, Madhya Pradesh, Gujarat, Maharashtra and Andhra Pradesh.

The first green energy corridor project was started in 2015 and by March 2020, about 3,200 circuit km interstate transmission lines and 17,000 MVA substations were commissioned.

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The interstate GEC-II transmission system included 13 GW renewable energy evacuation from Ladakh to other parts of the country at a cost Rs 20,774 crore, with a 40% central grant. Besides, there were intrastate transmission system phase I and II, with a total 20,450 circuit km lines.

According to the latest National Electricity Plan, more than 191,000 circuit km of transmission lines and 1,270 GVA of transformation capacity are planned to be added between FY23 and FY32, along with 33 GW of high-voltage direct current bipole links.