Government Approves Green Energy Corridor Phase III with ₹1.86 Lakh Crore Outlay for Renewable Energy

The Union Cabinet has approved the third phase of the Green Energy Corridor programme with a total project outlay of ₹1.86 lakh crore, as per news reports. The scheme will support new transmission lines, upgrades to existing networks and battery storage projects across states. 

The programme will run until FY33 and includes central financial support of ₹54,082 crore. It is planned to help evacuate 135 GW of renewable power while adding 50 GWh of battery storage. 

₹1.36 Lakh Crore for Transmission 

The largest part of the scheme will go towards intra-state transmission systems. The government has envisaged an investment of ₹1.36 lakh crore for developing this infrastructure. 

The new and upgraded networks are intended to strengthen state-level power grids and provide transmission capacity for renewable energy. 

₹50,000 Crore for Battery Storage 

Another ₹50,000 crore has been earmarked for 50 GWh of battery energy storage projects. Renewable energy developers will also receive support for setting up these storage systems. 

The central assistance includes ₹6,000 crore of viability gap funding for the battery storage component. 

135 GW Renewable Energy Evacuation 

The programme is designed around the evacuation of 135 GW of renewable energy. Prime Minister Narendra Modi said the scheme would also support the broader goal of reaching 900 GW of non-fossil capacity by 2035. 

The storage component is expected to help manage variations in renewable generation from sources such as solar and wind. 

Transmission Projects to Use Competitive Bidding 

Information and Broadcasting Minister Ashwini Vaishnaw said new transmission lines will be awarded through tariff-based competitive bidding. 

Transmission service providers will build, own, operate and maintain the resulting assets. Vaishnaw described managing the variations in solar and wind generation as a major challenge. 

Phase III Has Much Larger Outlay 

The latest phase is considerably larger than the earlier programmes. Phase I had an outlay of about ₹10,141 crore, while Phase II had an outlay of ₹20,774 crore. 

Phase III now carries a ₹1.86 lakh crore project outlay and will run through FY33. 

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Conclusion 

Green Energy Corridor Phase III combines large-scale transmission investment with battery storage support. The scheme targets 135 GW of renewable energy evacuation and 50 GWh of storage capacity through FY33. 

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