Cabinet Approves Green Energy Corridor Phase-III

Key Highlights

• The Union Cabinet approved the Green Energy Corridor Phase-III (GEC-III) scheme with a massive outlay of Rs 1.86 lakh crore.
• The initiative aims to build a robust Intra-State Transmission System (InSTS) to evacuate up to 135 GW of renewable energy across various States and Union Territories by FY 2032-33.
• It integrates 50 GWh of Battery Energy Storage Systems (BESS) to manage renewable intermittency.

About the Green Energy Corridor (GEC)

• About: The GEC is a critical national infrastructure initiative implemented by the Ministry of New and Renewable Energy (MNRE) to efficiently integrate renewable electricity with conventional power stations, ensuring grid stability and helping India meet its climate change commitments.
• Origin & Need: Stemming from a 2012 Power Grid Corporation of India Limited (PGCIL) study, the project was launched in 2015 to upgrade existing power grids that were incapable of handling the erratic and geographically dispersed nature of large-scale renewable generation.

Key Components of GEC

• Inter-State Transmission System (ISTS): Develops high-voltage transmission lines to evacuate power across state boundaries from renewable energy-rich states to high-demand regions via the central grid. Central Financial Assistance (CFA) offsets intra-state transmission charges, reducing power costs for end users.
• Intra-State Transmission System (InSTS): Strengthens local transmission networks to distribute renewable energy efficiently within different districts of the same state.
• Renewable Energy Management Centres (REMCs): Utilize real-time data and forecasting tools to balance irregular generation patterns of solar and wind power. They operate across the Southern, Western, and Northern Regions in coordination with State, Regional, and National Load Dispatch Centres (NLDC).
• Grid Stability Mechanisms:
• Reactive Power Compensation (RPC): Corrects voltage fluctuations.
• Energy Storage Systems (ESS): Grid-scale batteries store excess power for dispatch during peak demand or low generation periods.

GEC Phases at a Glance

• Phase-I: Implemented across eight renewable-rich states — Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh, and Madhya Pradesh.
• Phase-II: Covers Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh; supports the target of integrating over 500 GW of non-fossil fuel-based capacity by 2030.

Green Energy Corridor Phase-III (GEC-III)

• Evacuation Capacity: Up to 135 GW of renewable energy across various States and Union Territories.
• Focus: Exclusively on strengthening and expanding the Intra-State Transmission System (InSTS) to connect renewable-rich zones directly with regional load centres.
• Grid-Scale Storage: 50 GWh of Battery Energy Storage Systems (BESS) at generator terminals and critical nodes to:
• Address renewable intermittency
• Prevent peak-hour curtailment
• Manage grid congestion
• Provide round-the-clock power during non-solar hours
• Project Execution Mechanism:
• Greenfield Projects: Executed through Tariff Based Competitive Bidding (TBCB) under a Build-Own-Operate-Maintain (BOOM) framework.
• Brownfield Projects: Network upgrades and system-strengthening works undertaken on a Cost Plus Basis (CPB).
• Nodal Agencies: State Transmission Utilities (STUs) serve as the principal implementing bodies in coordination with private and public Transmission Service Providers (TSPs).
• Target Timeline: Full commissioning and operationalization by FY 2032-33.

Strategic Significance

• Serves as a critical infrastructure backbone to help India achieve its expanded target of 900 GW of installed non-fossil fuel capacity by 2035.
• Drives domestic battery manufacturing and grid management capabilities.
• Reduces dependence on fossil-fuel-based balancing generation and improves the system's ability to absorb variable solar and wind power.
• Supports long-term energy security, reduces carbon emissions, and generates employment.

Previous Year Questions (PYQ)

Prelims (2015): With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?

1. It is a Public Limited Government Company.
2. It is a Non-Banking Financial Company.

Answer: (c) Both 1 and 2

Mains (2018): "Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)". Comment on the progress made in India in this regard.

Mains (2013): Write a note on India's green energy corridor to alleviate the problem of conventional energy.