Green Energy Corridor Phase-III Scheme

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News: The Union Cabinet approved GEC Phase-III on September 30 to enable evacuation of up to 135 GW of renewable energy across States and Union Territories.

About Green Energy Corridor Phase-III Scheme

  • Green Energy Corridors (GEC) are dedicated power transmission networks developed to evacuate and integrate renewable energy into the grid.
  • Nodal Ministry: Ministry of New and Renewable Energy (MNRE)
  • Objective: The scheme aims to strengthen the Intra-State Transmission System (InSTS), improve renewable energy evacuation and facilitate better grid integration.
  • Different Phases
PhaseDurationSpecific Features
GEC Phase-ILaunched in 2015–16
  • It Covered 8 renewable-rich states (Gujarat, Andhra Pradesh, Karnataka, Himachal Pradesh, Maharashtra, Madhya Pradesh, Tamil Nadu, and Rajasthan.)and targeted evacuation of about 24 GW of renewable energy.
GEC Phase-IIFY 2021–22 to FY 2025–26
  • It covers 7 states ( Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh) and facilitates grid integration and power evacuation of approximately 20 GW of Renewable Energy.
  • It provides 33% Central Financial Assistance (CFA) for the project cost.
GEC Phase-IIITargeted for FY 2032–33
  • It strengthens the Intra-State Transmission System (InSTS) to enable evacuation of up to 135 GW of Renewable Energy.
  • For the first time under the Green Energy Corridor programme, it includes 50 GWh of Battery Energy Storage Systems (BESS) to improve grid flexibility.
  • Key Features of GEC Phase-III
    • Total Project Outlay: It has a total project outlay of ₹1,86,405 crore.
      • It including ₹1,36,378 crore for Intra-State Transmission System (InSTS) and ₹50,000 crore for Battery Energy Storage Systems (BESS).
    • Central Financial Assistance: It provides ₹54,082 crore as Central Financial Assistance (CFA) to offset intra-state transmission charges and keep power costs down.
    • Project Implementation: Greenfield projects will follow Tariff Based Competitive Bidding (TBCB), while brownfield upgradation and network strengthening will follow Cost Plus Basis (CPB).
    • Implementation Agencies: State Transmission Utilities will be the overall implementing agencies, while Transmission Service Providers will participate through a Build, Own, Operate and Maintain (BOOM) model.
    • Long-term Benefits: The scheme will support 900 GW installed non-fossil capacity by 2035, strengthen energy security and promote sustainable growth.
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