Green Energy Corridor Phase-III Scheme, Features, Benefits and Significance

The Union Cabinet approved the Green Energy Corridor Phase-III scheme on September 30, 2026, to strengthen intra-state transmission, enable evacuation of up to 135 GW of renewable energy and deploy 50 GWh of Battery Energy Storage Systems by FY 2032-33.

About Green Energy Corridor Phase-III Scheme

The Green Energy Corridor Phase-III scheme aims to strengthen India’s Intra-State Transmission System (InSTS) so that increasing renewable power generation can be efficiently evacuated and integrated into the electricity grid.

The scheme combines transmission infrastructure with Battery Energy Storage Systems (BESS) to improve the flexibility and reliability of the renewable energy grid.

Key Features of Green Energy Corridor Phase-III Scheme

Green Energy Corridor Phase-III Scheme has following features: 

• The scheme will enable evacuation of up to 135 GW of renewable energy across States and Union Territories.
• It provides for the deployment of 50 GWh of Battery Energy Storage Systems at renewable energy developer or generator ends or at other locations important for grid flexibility.
• The total project outlay is ₹1,86,405 crore, including ₹1,36,378 crore for Intra-State Transmission System infrastructure and ₹50,000 crore for BESS.
• The scheme provides Central Financial Support of ₹54,082 crore to help offset intra-state transmission charges.
• The projects are targeted for completion by FY 2032-33.

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Green Energy Corridor Phase-III Scheme Need 

The expansion of renewable energy is creating new demands on India’s transmission network and electricity grid. The scheme is needed to address these challenges:

• Evacuating more renewable power: Stronger intra-state transmission is needed to carry electricity from renewable energy projects to the grid and demand centres.
• Managing variable generation: Solar and wind power fluctuate with weather and time, making it difficult to maintain a steady electricity supply.
• Reducing grid congestion: Rising renewable power flows can put pressure on existing transmission networks and create bottlenecks.
• Avoiding renewable energy wastage: Surplus renewable electricity may be curtailed when the grid cannot absorb it. Battery storage can store this excess power for later use.
• Meeting non-solar-hour demand: Energy storage can supply stored renewable electricity when solar power is unavailable, especially during evening and night-time demand.

Green Energy Corridor Phase-III Scheme Implementation

The State Transmission Utilities (STUs) will be the overall implementing agencies for the scheme. The transmission projects will follow different implementation models depending on whether they involve new infrastructure or upgradation of existing networks.

• New Greenfield Intra-State Transmission System projects will be implemented through Tariff Based Competitive Bidding (TBCB), under which Transmission Service Providers (TSPs) will develop, own, operate and maintain the projects through the Build-Own-Operate-Maintain (BOOM) model.
• Brownfield projects, involving the upgradation and strengthening of existing transmission networks, will be implemented on a Cost Plus Basis (CPB).

Green Energy Corridor Phase-III Scheme Significance 

Green Energy Corridor Phase-III is significant because of following factors: 

• Renewable energy integration: Strengthened intra-state transmission will improve the ability of States and Union Territories to integrate larger amounts of renewable electricity into the grid.
• Greater grid flexibility: BESS will provide the flexibility needed to balance fluctuations in renewable generation and changing electricity demand.
• Lower transmission burden: Central Financial Support can reduce the transmission charges associated with intra-state renewable power evacuation, helping contain the cost of electricity for end users.
• Energy security: Better utilisation of domestic renewable resources can strengthen India’s long-term energy security.
• Non-fossil capacity expansion: The scheme will support India’s target of achieving 900 GW of installed non-fossil capacity by 2035.
• Employment generation: Expansion of transmission infrastructure and BESS can create direct and indirect employment in power, manufacturing, construction, operations and grid management.
• Growth of energy storage industry: Deployment and manufacturing of BESS can support the development of India’s domestic energy storage ecosystem.