Green Energy Corridor Phase-III: ₹1.86 Lakh Crore to Evacuate 135 GW of Renewables

On 30 September 2026, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Green Energy Corridor Phase-III (GEC-III), a ₹1,86,405 crore scheme to strengthen the transmission networks inside states so that up to 135 gigawatts (GW) of renewable energy can be carried out of the districts where it is generated. For the first time in the Green Energy Corridor programme, the scheme bundles in 50 GWh of battery energy storage, an acknowledgment that in India's power system, moving electricity and timing it have become two sides of the same problem [1].

The Phase-III approval caps a decade-long sequence. Phase-I (24 GW of evacuation capacity across eight states) is now fully commissioned; Phase-II (about 20 GW across seven states, plus a dedicated 13 GW inter-state line from Ladakh) is under implementation. Phase-III, targeted for completion by FY 2032-33, is on an entirely different scale. And it arrives with India's non-fossil electricity capacity having just crossed 300 GW, more than 60% of the 500 GW target for 2030 [1][2][3].

The scheme at a glance

• What it funds: Intra-state transmission systems (InSTS) to evacuate up to 135 GW of renewables, plus 50 GWh of Battery Energy Storage Systems (BESS) at the renewable energy developer/generator end or other locations [1].
• The money: Total outlay ₹1,86,405 crore: ₹1,36,378 crore for InSTS and ₹50,000 crore for the 50 GWh of batteries. Central financial support: ₹54,082 crore [1].
• The deadline: The scheme is targeted to be set up by FY 2032-33, aligned with the target of 900 GW of installed non-fossil capacity by 2035 and the transmission plan the Central Electricity Authority has drawn up for integrating that capacity [1][7].
• How it is built: Greenfield projects through Tariff-Based Competitive Bidding (TBCB); brownfield upgrades on a Cost-Plus Basis. State Transmission Utilities (STUs) are the overall implementing agencies; Transmission Service Providers participate under TBCB on a Build-Own-Operate-Maintain (BOOM) model [1].

What "intra-state transmission" means, and why it decides how much renewable energy India can use

India's grid works as a chain: power flows from a generation project to a local substation, then along the state's own network (intra-state), then onto the national inter-state grid (ISTS) that the Centre builds, and finally to the state where it is consumed.

Some links in that chain are the Centre's responsibility: the ISTS is planned and awarded centrally. But the first and often weakest link belongs to states. A 1 GW solar park in a renewable-rich district is connected to the state's transmission system; if the district's substations and lines lack capacity, the power has nowhere to go even after the park is built. This bottleneck, "evacuation", is exactly what the Green Energy Corridor programme addresses, through central financial assistance to states for building their own networks [3][5].

That is also why GEC-III's central support of ₹54,082 crore matters to ordinary electricity users: the Central Financial Assistance is designed to offset intra-state transmission charges, which "will help in offsetting the Intra-State transmission charges and thus keep the power costs down", ultimately benefiting the end users, the citizens, as the Cabinet note puts it [1].

Why 50 GWh of batteries sits inside a transmission scheme

Solar power peaks around noon; consumer demand peaks in the evening. Wind is strong in some seasons and still in others. That mismatch, intermittency, is what the battery component of GEC-III is built for. The Cabinet note lists the target squarely:[1]

"Address intermittency, congestion, peak-hour curtailment and meet non-solar hour demand."

The 50 GWh of storage planned under GEC-III lands in the middle of an already aggressive national storage build-out [1][3]:

• The Ministry of Power runs a Viability Gap Funding scheme that envisages 43 GWh of battery storage.
• As of March 2026, 9,653.94 MW / 26,729.32 MWh of BESS was under construction and 19,797.65 MW / 61,013.40 MWh was at the tendering stage.
• 11,620 MW / 69,720 MWh of pumped storage projects were under construction, the older, hydro-based way of storing grid energy.
• The battery manufacturing PLI scheme has an outlay of ₹18,100 crore for 50 GWh of advanced chemistry cell capacity, of which 10 GWh is earmarked for grid-scale storage.

Why storage changes the economics, in one example. Without storage, a solar park must sell whatever it generates the moment it generates it; at noon, when many parks produce together, wholesale prices collapse and the grid operator may curtail output. With a battery parked next to the same park, that noon surplus can be held and sold at the evening peak. The GEC-III provision of deploying storage at the generator's end turns a transmission constraint problem into a scheduling opportunity [1].

The three phases: what each one does, and where they stand

The Green Energy Corridor programme has evolved with India's renewable ambitions: each phase is larger than the last, and the scope has widened from state networks (Phases I and III, run by the Ministry of New and Renewable Energy) to one landmark inter-state project (Phase-II's Ladakh component) [3][4][5][6].

Phase-I: the foundation (now fully commissioned).

• Scope: About 9,700 circuit km of transmission lines and 22,600 MVA of substation capacity across eight renewable-rich states (Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu) to integrate roughly 24 GW of renewables. Implemented by State Transmission Utilities [5].
• Funding: Total project cost of about ₹10,141.68 crore: 40% Central Financial Assistance (₹4,056.67 crore), 40% as a loan from Germany's KfW development bank (EUR 500 million) and 20% equity from the states [5].
• The update: The scheme's timeline ran past its original schedule: one MNRE extension pushed the commissioning deadline to March 2023, and progress stood at about 8,940 circuit km as of July 2023. By March 2026, the government told Parliament that the intra-state transmission system for 24 GW under GEC-I "is already commissioned". Phase-I is, in effect, complete [3][5].

Phase-II: the present build (under implementation, plus the Ladakh mega-project).

• The intra-state part: About 10,750 circuit km of lines and 27,500 MVA of substations for roughly 20 GW of renewables, in seven states: Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh. Cost: ₹12,031.33 crore, with 33% CFA (₹3,970.34 crore) and the balance arranged by states, including through loans from IREDA/REC/PFC/KfW. Approved in January 2022, it was targeted for completion by 2026; as of March 2026, the government described it as under implementation [3][4][6][8].
• The Ladakh inter-state component: In October 2023, the Cabinet Committee on Economic Affairs approved an ISTS project to evacuate 13 GW from a planned 13 GW renewable complex (with 12 GWh of BESS) at Pang in Ladakh. Cost: ₹20,773.70 crore, with 40% CFA (₹8,309.48 crore); POWERGRID is the implementing agency. The project involves 713 km of transmission lines, including 480 km of HVDC, with 5 GW HVDC terminals at Pang and at Kaithal in Haryana, where the line integrates with the national grid. It is targeted for FY 2029-30, and also provides a dedicated link to strengthen power supply to Ladakh and the Leh-Alusteng-Srinagar corridor [4].

Phase-III: the scale-up (just approved).

• Scope: Up to 135 GW of evacuation capacity in the states, plus 50 GWh of batteries, several times the capacity the first two intra-state phases were built for. Cost: ₹1,86,405 crore, with ₹54,082 crore of central support. Target: FY 2032-33 [1].

Reading the three phases together. Phases I and III fund the same idea, the state-level networks, separated by a decade in which India's renewable capacity went from tens of GW to a 500 GW target. Phase-II's intra-state leg was designed in the early 2020s; Phase-III is designed for a world heading to 900 GW of non-fossil capacity by 2035 [1][7].

Why the grid, not generation, is the binding constraint

India's clean-energy numbers have moved from ambition to arithmetic [2]:

• Non-fossil capacity crossed 300.50 GW on 31 July 2026: solar 164.59 GW, wind 58.14 GW, large and small hydro 57.24 GW, bio-power 11.75 GW and nuclear 8.78 GW, over 60% of the 500 GW target for 2030, and more than 54% of the country's total installed capacity of about 552 GW.
• FY 2025-26 alone saw a record 55.29 GW of non-fossil capacity added, including 44.6 GW of solar.
• Renewable generation nearly tripled in a decade, from 190.96 billion units in 2014-15 to 477.79 billion units in 2025-26.
• Domestic solar module manufacturing capacity under the ALMM list has crossed 200 GW, from 2.3 GW in 2014.

Every one of those numbers is a transmission question. Generation capacity can be financed and built in two years; transmission lines, especially through forests, farmlands and hill terrain, take longer. The consequence of the mismatch is curtailment: clean power that exists on paper but cannot reach a buyer. That is the arithmetic behind GEC-III: with peak electricity demand projected to reach 446 GW by 2034-35, the transmission system is being planned for integration of over 500 GW of renewable capacity by 2030, and the CEA's transmission plan is built for over 900 GW of non-fossil capacity by 2035-36 [1][3][7].

Where things stand

• Phase-I is done; Phase-II is mid-build; Phase-III has just been funded. The programme now covers ten renewable-rich states through its intra-state phases, plus the Pang-Kaithal inter-state line [3][4][5][6].
• The money structure is settled. States get 40% central support in Phase I and the Ladakh project, and 33% in Phase-II's intra-state leg. GEC-III's ₹54,082 crore is the largest central allocation so far, with competitive bidding for new lines and cost-plus execution for upgrades [1][5][6].
• Storage has moved from side-note to centrepiece. GEC-III's 50 GWh BESS provision stacks on top of the 43 GWh VGF pipeline, the roughly 26.7 GWh already under construction and 61 GWh at tendering: the grid is being built with batteries in mind [1][3].
• What to watch: state-wise allocation of the GEC-III outlay, progress on the Pang-Kaithal HVDC line, BESS tendering under the scheme, and whether evacuation capacity stays ahead of the curtailment curve as solar additions accelerate toward 2030 [1][3][4].

Quick answers

What is the Green Energy Corridor Phase-III? A ₹1,86,405 crore scheme approved on 30 September 2026 to build intra-state transmission systems for evacuating up to 135 GW of renewable energy across states, and to deploy 50 GWh of battery energy storage. It is targeted for completion by FY 2032-33 with ₹54,082 crore of central financial support [1].

What are the three phases of the Green Energy Corridor programme? Phase-I: about 9,700 circuit km across eight states for 24 GW, now fully commissioned. Phase-II: about 10,750 circuit km across seven states for 20 GW (under implementation), plus the 13 GW Pang-Kaithal inter-state line from Ladakh. Phase-III: intra-state transmission for 135 GW plus 50 GWh of batteries [1][3][4][5][6].

Why does a transmission scheme include battery storage? Because renewable generation is intermittent: solar peaks at noon while demand peaks in the evening. The 50 GWh of BESS under GEC-III is meant to address intermittency, congestion, peak-hour curtailment and non-solar hour demand, making stored noon-time solar usable at night [1].

Who implements the Green Energy Corridor schemes? State Transmission Utilities are the overall implementing agencies for the intra-state components. Greenfield projects are awarded through Tariff-Based Competitive Bidding on a Build-Own-Operate-Maintain model; brownfield strengthening works are executed on a cost-plus basis. The Ladakh inter-state project is implemented by POWERGRID [1][4].

How does this benefit electricity consumers? The Central Financial Assistance under GEC-III, ₹54,082 crore, offsets intra-state transmission charges, which helps keep power costs down for end users, while also reducing curtailment of cheap renewable power [1].

What is the 900 GW by 2035 target? The GEC-III scheme is designed to help achieve the target of 900 GW of installed non-fossil electricity capacity by 2035. The Central Electricity Authority has prepared a transmission plan for integrating over 900 GW of non-fossil capacity by 2035-36, building on India's 500 GW non-fossil target for 2030 [1][7].

Sources

1. Press Information Bureau / Prime Minister's Office: "Cabinet approves Green Energy Corridor Phase-III scheme for Development of Intra-State Transmission System with Battery Energy Storage Systems", Release ID 2316948, 30 September 2026. pib.gov.in; pmindia.gov.in
2. Press Information Bureau: "India Achieves Landmark 300 GW Non-Fossil Fuel Power Capacity", Ministry of New and Renewable Energy, Release ID 2296782, 9 August 2026. pib.gov.in
3. Press Information Bureau: "Integration of Non-Fossil Fuel Power Generating into National Grid", Ministry of Power (Rajya Sabha reply), Release ID 2240739, 16 March 2026. pib.gov.in
4. Press Information Bureau: "Cabinet approves Green Energy Corridor (GEC) Phase-II - Inter-State Transmission System (ISTS) for 13 GW Renewable Energy Project in Ladakh", Cabinet Committee on Economic Affairs, Release ID 1968732, 18 October 2023. pib.gov.in
5. Ministry of New and Renewable Energy: Intra-State Green Energy Corridor Phase-I scheme page. mnre.gov.in/en/gec-1
6. Ministry of New and Renewable Energy: Intra-State Green Energy Corridor Phase-II scheme page. mnre.gov.in/en/gec-phase-ii
7. Central Electricity Authority: "Transmission Plan for Integration of over 900 GW Non-Fossil Fuel Capacity by 2035-36", March 2026. cea.nic.in
8. Press Information Bureau: "Green Energy Corridor Phase-II" (approval of the InSTS GEC-II scheme, noting Phase-I progress), 6 January 2022. pib.gov.in