Under the Green Energy Corridor Phase III (GEC-III) scheme, which India's Union Cabinet has now approved, INR 50,000 crore has been allocated to 50 GWh of BESS. The batteries will be paired with stronger intra-state transmission that is intended to evacuate up to 135 GW of renewable energy by FY 2032-33.
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The Union Cabinet, an India-based executive body led by Prime Minister Narendra Modi, has approved the third phase of the Green Energy Corridor, known as GEC-III. The scheme will add 50 GWh of BESS to the grid and strengthen intra-state transmission, at a total outlay of INR 1,86,405 crore (~ $19.4 billion). It is targeted for completion by FY 2032-33.
The storage has been included to deal with the problems that renewable growth has created. Solar and wind output is intermittent, the network is congested, and power is curtailed at peak hours, while demand continues after the sun has set. For that reason, the batteries will be installed at the renewable energy developer or generator end, or at any other location that is important for grid flexibility.
Of the total outlay, INR 50,000 crore has been allocated to the 50 GWh of BESS. The remaining INR 1,36,378 crore will be spent on Intra-State Transmission Systems (InSTS), which are designed to evacuate up to 135 GW of renewable energy across the States and Union Territories. The government will also provide Central Financial Support of INR 54,082 crore, and it has said that this support will offset intra-state transmission charges and thereby keep power costs down for end users.
The work will be delivered through two routes. New greenfield projects under the InSTS component will be put out to Tariff Based Competitive Bidding (TBCB). Brownfield upgrades and network-strengthening works, by contrast, will be carried out on a Cost Plus Basis (CPB). The State Transmission Utilities will lead the work as implementing agencies, while Transmission Service Providers will bid to build, own, operate and maintain the projects under a BOOM model.
The government has linked the scheme to India's target of 900 GW of installed non-fossil capacity by 2035. It also expects BESS manufacturing and deployment to create jobs in the domestic energy storage industry, in addition to long-term skilled roles in operation, maintenance and grid management in the participating States.
The Union Cabinet is chaired by the Prime Minister, and it has approved the scheme for implementation within the States and Union Territories of India.