Green Energy Corridor Phase-III

Why in News?

Recently, the Union Cabinet approved the Green Energy Corridor Phase-III (GEC-III) on 30 September 2026.

Green Energy Corridor Phase-III

• Aim – To strengthen the Intra-State Transmission System (InSTS) to facilitate the evacuation and integration of renewable energy.
• All Greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB) mode.
• While brownfield upgradation and network strengthening works will be executed under Cost Plus Basis (CPB).
• Implementing agencies – State Transmission Utilities (STUs)
• Transmission Service Providers (TSPs) will participate under TBCB on a Build-Own-Operate-Maintain (BOOM) model.

Battery Energy Storage System (BESS)  

• It is a technological system designed to store electrical energy in rechargeable batteries and release it as required.

• Role – BESS will address the following challenges:
  • Intermittency in renewable energy generation
  • Grid congestion
  • Curtailment during peak hours
  • Electricity demand during non-solar hours
  • Overall grid flexibility and stability
• Significance
• It facilitates intra-state renewable power evacuation and supports grid integration.
• It supports India's goal of achieving 900 GW of installed non-fossil fuel capacity by 2035.
• The CFA offsets intra-state transmission charges, helping to contain electricity costs.
• BESS promotes energy security and reduces the carbon footprint.
• It generates employment in the power, manufacturing, construction, and energy storage sectors.

Reference

PM India | Green Energy Corridor Phase-III