Major Green Energy Initiative Approved: ₹54,000 Crore Energy Corridor-3 Project Greenlit

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Ganpat Singh Chouhan

Major Green Energy Initiative Approved: ₹54,000 Crore Energy Corridor-3 Project Greenlit

New Delhi, September 30 (Daily Kiran) : The Indian Cabinet, led by Prime Minister Narendra Modi, has approved the PM-Dhara scheme aimed at strengthening intra-state transmission systems. This initiative will facilitate the evacuation of up to 135 gigawatts of renewable energy across states and union territories.

Santosh Kumar Sarangi, Secretary of the Ministry of New and Renewable Energy, confirmed the approval of the Green Energy Corridor-3 (GEC-3) project, which has a budget of approximately ₹54,000 crore. The plan is designed to support state governments in transmitting renewable energy from generation sites to load centers.

An essential component of the GEC-3 project is the deployment of a 50 gigawatt-hour Battery Energy Storage System (BESS) at critical grid locations. This system aims to address challenges posed by the variability of renewable energy, transmission congestion, and peak-hour demand, while also ensuring electricity availability during non-solar hours. The initiative is expected to enhance grid integration and electricity evacuation within states and union territories.

The implementation of this scheme is targeted for completion by the fiscal year 2032-33, with a total project cost estimated at ₹1,86,405 crore. Out of this, ₹1,36,378 crore is allocated for the development of intra-state transmission systems under the Green Energy Corridor Phase-3, while ₹50,000 crore is earmarked for the Battery Energy Storage System.

The project includes ₹54,082 crore in central financial assistance, which will help reduce intra-state transmission charges. This reduction is anticipated to lower electricity costs, ultimately benefiting consumers.

All greenfield projects under the intra-state transmission system component will be implemented through a tariff-based competitive bidding (TBCB) process. Meanwhile, brownfield upgrades and network strengthening will be carried out on a cost-plus basis. State transmission utilities will act as the overall implementation agencies, while transmission service providers will participate in projects through a Build-Own-Operate-Maintain (BOOM) model under the TBCB framework.

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