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Green Energy Corridor Phase-III Scheme

  • 03 Oct 2026

On 30th September 2026, the Union Cabinet approved the Green Energy Corridor Phase-III (GEC-III) scheme with Battery Energy Storage Systems (BESS).

Objectives

  • Strengthen the Intra-State Transmission System (InSTS).
  • Facilitate grid integration and transmission of up to 135 GW of renewable energy across States and Union Territories.

Key Features

  • Establish 50 GWh of battery storage capacity to enhance grid flexibility, manage intermittent renewable generation, reduce congestion and meet peak demand.
  • Under the transmission component, all new, or greenfield, projects will be implemented through Tariff Based Competitive Bidding (TBCB).
  • Brownfield projects involving upgrades and strengthening of existing networks will be executed on a Cost Plus Basis.

Implementation

  • Greenfield projects will be developed through Tariff-Based Competitive Bidding (TBCB), while brownfield works will follow a cost-plus basis.
  • Transmission Service Providers will operate under the Build-Own-Operate-Maintain (BOOM) model, with State Transmission Utilities as implementing agencies.

Long-Term Benefits

  • Support India’s 2035 target of 900 GW non-fossil capacity,
  • Strengthen energy security,
  • Reduce carbon emissions,
  • Create employment in energy, manufacturing and construction.