Pratidin
Economy1 October 2026The Hindu, BusinessGS3

Cabinet clears ₹1.86 lakh crore Green Energy Corridor Phase-III with 50 GWh of batteries

India can build solar parks fast. Can State grids carry their power, and store it for the evening?

Published 1 October 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work

The Union Cabinet chaired by Prime Minister Narendra Modi approved the Green Energy Corridor Phase-III (GEC-III) scheme on 30 September 2026. It will strengthen the Intra-State Transmission System (InSTS), the lines and substations inside each State, so that up to 135 gigawatts (GW) of renewable energy can be evacuated across States and Union Territories. The total outlay is ₹1,86,405 crore: ₹1,36,378 crore for intra-State transmission and ₹50,000 crore for 50 gigawatt-hours (GWh) of Battery Energy Storage Systems (BESS). The Centre will give ₹54,082 crore as central financial support, about 29% of the outlay. The work is to be completed by 2032-33.

Batteries can be placed at the renewable developer's end or at any other location of importance on the grid. They are meant to tackle the intermittency of solar and wind, transmission congestion, curtailment (when generators are told to cut output because the grid cannot take it) and demand in non-solar hours. Greenfield projects will be awarded through Tariff Based Competitive Bidding (TBCB) and brownfield work on a cost-plus basis. State Transmission Utilities will be the implementing agencies, and Transmission Service Providers will build, own, operate and maintain the assets. The government says the scheme will help reach 900 GW of installed non-fossil capacity by 2035.

GEC-III is far larger than the earlier phases. Phase-I covered eight renewable-rich States for about 24 GW at a cost of ₹10,141.68 crore. Phase-II, approved in January 2022, covered seven States for about 20 GW, with ₹12,031.33 crore of outlay, 33% central assistance, about 10,750 circuit km of lines and 27,500 MVA of substations, over 2021-22 to 2025-26. Briefing the media, Union Minister Ashwini Vaishnaw said transmission has to be in place before renewable capacity is added.

Practise this in the app: flashcards, quiz and a timed answer
Prelims

Prelims facts

  • GEC-III, approved on 30 September 2026, has an outlay of ₹1,86,405 crore and central financial support of ₹54,082 crore.
  • It strengthens intra-State transmission to evacuate up to 135 GW of renewable energy and adds 50 GWh of battery storage by 2032-33.
  • Greenfield projects go through Tariff Based Competitive Bidding; brownfield work is on a cost-plus basis; State Transmission Utilities implement.
  • GEC-II (approved January 2022) was ₹12,031.33 crore for about 20 GW in seven States, with 33% central assistance.
  • The scheme is linked to the target of 900 GW of installed non-fossil capacity by 2035.

Quick recall

GEC-III total outlay
₹1,86,405 crore (₹1,36,378 crore transmission plus ₹50,000 crore battery storage).
GEC-III central financial support
₹54,082 crore.
Renewable capacity GEC-III aims to evacuate
Up to 135 GW.
Battery storage under GEC-III
50 GWh of Battery Energy Storage Systems.
GEC-III completion target
2032-33.
Implementing agencies for GEC-III
State Transmission Utilities.
GEC-II at a glance
Approved January 2022: ₹12,031.33 crore, about 20 GW, seven States, 33% central assistance, 2021-22 to 2025-26.
Non-fossil capacity target the scheme supports
900 GW of installed non-fossil capacity by 2035.

Prelims practice question

With reference to the Green Energy Corridor Phase-III scheme approved in September 2026, which one of the following statements is correct?

  1. It funds only inter-State transmission lines built by central agencies
  2. It combines intra-State transmission with battery energy storage systems
  3. It is financed entirely by the Union Government
  4. It applies only to the eight States covered in Phase-I
Show answer

Answer: (b) It combines intra-State transmission with battery energy storage systems. GEC-III funds Intra-State Transmission Systems (₹1,36,378 crore) and 50 GWh of battery storage (₹50,000 crore). Central support is ₹54,082 crore, about 29% of the outlay, not the whole. It covers States and Union Territories generally, not only Phase-I States.

Use this in UPSC Mains: previous-year questions

Recurring theme: Energy infrastructure and the integration of renewable energy into India's grid

  1. 2022 · GS3 · 15 marksCovers one partUse it in the body

    Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain.

    How to use this

    Use it to argue that India's renewable goals hinge on transmission and storage, and to show public money now flowing into grid integration of renewables.

    • GEC-III (approved 30 September 2026) has an outlay of ₹1,86,405 crore to strengthen intra-State transmission for up to 135 GW of renewables and add 50 GWh of battery storage by 2032-33.
    • Central financial support of ₹54,082 crore (about 29%) eases the burden that would otherwise raise tariffs, an example of public money backing clean energy infrastructure.
    • Minister Ashwini Vaishnaw said transmission must be in place before renewable capacity is added; the scheme is linked to 900 GW of installed non-fossil capacity by 2035.
  2. 2018 · GS3 · 10 marksCovers one partUse it in the example

    "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.

    How to use this

    Use the Green Energy Corridor phases as evidence of India's progress in building the grid needed for reliable, sustainable energy, and of the scale still required.

    • GEC-I covered eight States for about 24 GW (₹10,141.68 crore); GEC-II (January 2022) seven States for about 20 GW, with 10,750 circuit km of lines and 27,500 MVA of substations.
    • GEC-III (₹1,86,405 crore) jumps to 135 GW of renewable evacuation plus 50 GWh of batteries to tackle intermittency, curtailment and demand in non-solar hours.
    • Delivery design: greenfield projects through Tariff Based Competitive Bidding, brownfield on cost-plus, implemented by State Transmission Utilities, completion by 2032-33.
Also asked on this theme
  1. 2021 · GS3 · 10 marks

    Explain the purpose of the Green Grid Initiative launched at World Leaders Summit of the COP26 UN Climate Change Conference in Glasgow in November, 2021. When was this idea first floated in the International Solar Alliance (ISA)?

Mains practice question

Renewable capacity in India is growing faster than the grid that must carry it. In the light of the Green Energy Corridor Phase-III scheme, discuss the challenges of integrating renewable energy into the grid and the role of transmission and storage. (250 words)

Model answer

On 30 September 2026 the Cabinet approved the ₹1,86,405 crore Green Energy Corridor Phase-III (GEC-III) to evacuate up to 135 GW of renewable energy through intra-State grids and 50 GWh of battery storage.

Integration challenges

  • Intermittency: solar peaks at midday and disappears in the evening; wind varies by season.
  • Location mismatch: solar and wind parks are in Rajasthan, Gujarat and the south, far from many load centres.
  • Congestion and curtailment: when lines are full, generators are asked to cut output and clean power is wasted.
  • Weak State utilities: State Transmission Utilities and discoms often lack money to build ahead of demand.
  • Right of way and land: line projects face local opposition and forest clearances.

Role of transmission

  • Inter-State lines move bulk power across regions; GEC-III strengthens the State-level network so that power reaches consumers.
  • Tariff Based Competitive Bidding for greenfield lines brings private capital and lower costs.
  • Central support of ₹54,082 crore reduces the burden that would otherwise raise tariffs.

Role of storage

  • 50 GWh of batteries can shift midday solar to evening peaks.
  • Storage at generator ends reduces curtailment and the need for new lines.
  • Batteries also provide fast frequency support to keep the grid stable.

Way forward

  • Plan transmission ahead of generation.
  • Strengthen State utilities' finances and speed up right-of-way approvals.
  • Combine batteries with pumped storage, demand response and better forecasting.

Transmission and storage are the bridge between India's renewable capacity and its target of 900 GW of non-fossil capacity by 2035.

The basics

Why this matters

A solar park can be built in a year or two. The lines that carry its power often take longer. If the grid cannot take the power, it is curtailed, and the clean energy is lost. Green Energy Corridor Phase-III is the government's largest bet yet on the State-level grid and on batteries.

135 GW
Renewable capacity GEC-III aims to evacuate through State grids
With ₹1,86,405 crore of outlay and 50 GWh of batteries, to be completed by 2032-33.

Two layers of the grid

India's grid has two layers. The Inter-State and Intra-State Transmission page explains the difference. Inter-State lines move bulk power between regions. Intra-State lines, owned and run by State Transmission Utilities, carry it on to substations and distribution companies. GEC-III is about this second layer.

What the GEC-III money buys
  1. 1Intra-State transmission₹1,36,378 crore for lines and substations inside States
  2. 2Battery storage₹50,000 crore for 50 GWh of BESS
  3. 3Central financial support₹54,082 crore from the Centre, about 29% of the outlay

Why batteries

Solar output peaks at midday, while demand peaks in the evening. Battery Energy Storage Systems store surplus midday power and release it later. Placed near solar parks, they also ease congestion so that less power is curtailed.

How it will be built

New (greenfield) lines will be given out through Tariff Based Competitive Bidding: the bidder asking the lowest annual charge wins and then builds, owns, operates and maintains the line. Upgrades to existing (brownfield) assets will be paid on a cost-plus basis.

Each phase bigger than the last

The earlier rounds are described under Green Energy Corridor Phases I and II.

Outlay of each intra-State Green Energy Corridor phase (₹ crore)
Phase-I
₹10,141.68 crore
Phase-II
₹12,031.33 crore
Phase-III
₹1,86,405 crore
Phase-III includes ₹50,000 crore for battery storage.

The jump in scale reflects the target of 900 GW of non-fossil capacity by 2035.

Go deeper

In one line: The Cabinet has approved a ₹1,86,405 crore scheme to strengthen State grids and add 50 GWh of batteries, so that up to 135 GW of renewable power can reach consumers by 2032-33.

Why it matters for UPSC

GS3 asks about energy infrastructure, renewable targets and investment models. Prelims tests scheme numbers and terms such as BESS and TBCB.

The core idea

India's grid has two layers, explained in Inter-State and Intra-State Transmission. GEC-III funds the intra-State layer, run by State Transmission Utilities. It adds Battery Energy Storage Systems to deal with the mismatch between midday solar and evening demand. New lines will be awarded through Tariff Based Competitive Bidding. The scheme continues and greatly enlarges Green Energy Corridor Phases I and II.

Numbers and dates to remember

  • Approved: 30 September 2026.
  • Outlay: ₹1,86,405 crore = ₹1,36,378 crore (transmission) + ₹50,000 crore (BESS).
  • Central financial support: ₹54,082 crore.
  • Capacity: up to 135 GW of renewable energy; 50 GWh of storage.
  • Completion: 2032-33. Linked target: 900 GW non-fossil capacity by 2035.

Where to go next

Go deeper: will wires and batteries keep pace with solar?

The case for the scheme. Renewable capacity can be added quickly, but power that cannot be evacuated is curtailed. By funding the State layer described in Inter-State and Intra-State Transmission, GEC-III closes the last link between solar parks and consumers. Central support of ₹54,082 crore lowers what State utilities, and finally consumers, must pay.

Storage as part of the grid. Earlier phases built only lines. GEC-III treats Battery Energy Storage Systems as grid assets, placed at generator ends or key locations. This can reduce congestion and serve evening peaks, which is when India's demand is hardest to meet with solar.

Concerns. Critics raise three concerns. First, State finances: about 71% of the cost is outside central support, and many State utilities are financially weak. Second, execution: transmission lines face right-of-way disputes, forest clearances and land issues. Third, technology and supply chains: much of the battery cell supply is imported, so costs depend on global prices and trade policy.

The bidding model. Using Tariff Based Competitive Bidding for new lines brings in private Transmission Service Providers, which build, own, operate and maintain assets. Supporters say competition lowers costs; critics say it needs strong contracts and regulators to handle delays.

Scale. Compared with Green Energy Corridor Phases I and II, each around ₹10,000 to ₹12,000 crore, Phase-III is about 15 times the size of Phase-II, matching the jump in ambition to 900 GW of non-fossil capacity by 2035.

Inter-State and Intra-State Transmission

The two layers of India's grid.

In one line: India's transmission grid has an inter-State layer that moves bulk power between States and regions, and an intra-State layer that carries it within a State.

The two layers

  • Inter-State Transmission System (ISTS): high-voltage lines that cross State borders and link the national grid. They are planned centrally and regulated by the Central Electricity Regulatory Commission.
  • Intra-State Transmission System (InSTS): lines and substations inside a State, owned and run by State Transmission Utilities and regulated by State Electricity Regulatory Commissions. They take power to distribution companies.

Why it is in the news

Many solar and wind projects connect at the State level, and State networks have often been the bottleneck. GEC-III funds the intra-State layer for up to 135 GW of renewable energy.

Where to go next

Battery Energy Storage Systems

Why the scheme buys batteries, not just wires.

In one line: A Battery Energy Storage System (BESS) stores electricity, usually in lithium-ion cells, and releases it when the grid needs it.

Power and energy

A battery has two ratings. Power (in MW or GW) is how fast it can deliver; energy (in MWh or GWh) is how much it holds. A 1 GW battery with 4 GWh can deliver full power for four hours. GEC-III specifies 50 GWh of storage.

What batteries do for a renewable grid

  • Shift midday solar to the evening peak.
  • Reduce curtailment when lines are congested.
  • Respond within seconds to keep grid frequency stable.

Why it is in the news

GEC-III sets aside ₹50,000 crore for 50 GWh of BESS, to be placed at renewable generators or other key grid locations.

Where to go next

Tariff Based Competitive Bidding

How new lines will be awarded.

In one line: Under Tariff Based Competitive Bidding (TBCB), developers compete on the annual charge they will levy for a project, and the lowest bidder builds and runs it.

How it differs from cost-plus

Under a cost-plus model, a utility builds an asset and the regulator allows it to recover its costs plus a fixed return. Under TBCB, the price is discovered through competition before construction, so the risk of cost overruns sits with the developer.

The model in GEC-III

Greenfield intra-State projects will be awarded through TBCB. Winning Transmission Service Providers will build, own, operate and maintain the assets. Brownfield work, such as upgrading existing substations, will be on a cost-plus basis.

Where to go next

Green Energy Corridor Phases I and II

What the earlier rounds did.

In one line: The Green Energy Corridor is a programme to build transmission for renewable energy; its intra-State phases have grown with each round.

Phase-I

The intra-State part of Phase-I covered eight renewable-rich States: Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu. It was meant to evacuate about 24 GW, at a cost of ₹10,141.68 crore with central assistance of ₹4,056.67 crore.

Phase-II

Approved in January 2022, Phase-II covered seven States: Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh. It aimed at about 20 GW, with about 10,750 circuit km of lines and 27,500 MVA of transformers. The cost was ₹12,031.33 crore with 33% central assistance (₹3,970.34 crore), over 2021-22 to 2025-26.

Why it is in the news

Phase-III, approved in September 2026, is about 15 times the size of Phase-II and adds batteries.

Where to go next

Prelims-style quiz

  1. Consider the following statements about the Green Energy Corridor phases:
    1. Phase-II covered seven States.
    2. Phase-II provided central financial assistance of 33% of the project cost.
    3. Phase-I covered about 24 GW of renewable capacity in eight States.
    4. Phase-III's central support is more than half of its total outlay.
    How many of the statements given above are correct?

    1. Only one
    2. Only two
    3. Only three
    4. All four
    Show answer

    Answer: (c) Only three. 1, 2 and 3 are correct. 4 is incorrect: ₹54,082 crore of ₹1,86,405 crore is about 29%.

  2. Under Green Energy Corridor Phase-III, who are the implementing agencies?

    1. Central Transmission Utility of India Ltd
    2. State Transmission Utilities
    3. Solar Energy Corporation of India
    4. Central Electricity Regulatory Commission
    Show answer

    Answer: (b) State Transmission Utilities. The scheme names State Transmission Utilities as implementing agencies, since it builds intra-State networks. Transmission Service Providers selected through bidding will build, own, operate and maintain the assets.

  3. Consider the following statements:
    1. The Intra-State Transmission System carries power within a State's boundaries.
    2. Under GEC-III, battery storage can be placed only at substations owned by the Centre.
    Which of the statements given above is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: (a) 1 only. 1 is correct. 2 is incorrect: the batteries can be placed at the renewable developer or generator end or at any other location of importance.

  4. Consider the following statements about the Green Energy Corridor Phase-III scheme:
    1. It provides for 50 GWh of Battery Energy Storage Systems.
    2. Greenfield transmission projects under it will be awarded through Tariff Based Competitive Bidding.
    3. It is to be completed by 2029-30.
    How many of the statements given above are correct?

    1. Only one
    2. Only two
    3. All three
    4. None
    Show answer

    Answer: (b) Only two. 1 is correct: ₹50,000 crore is for 50 GWh of BESS. 2 is correct: greenfield projects use TBCB, brownfield work is cost-plus. 3 is incorrect: the completion target is 2032-33.

  5. Consider the following statements:
    Statement-I: Battery Energy Storage Systems can reduce curtailment of solar power.
    Statement-II: Batteries can store surplus midday generation and release it when solar output falls.
    Which one of the following is correct in respect of the above statements?

    1. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
    2. Both Statement-I and Statement-II are correct and Statement-II does not explain Statement-I
    3. Statement-I is correct but Statement-II is incorrect
    4. Statement-I is incorrect but Statement-II is correct
    Show answer

    Answer: (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I. Both are correct. Curtailment happens when the grid cannot absorb power at a given time; storing the surplus and releasing it later is exactly how batteries reduce curtailment, so Statement-II explains Statement-I.

Syllabus

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