Green Energy Corridor Phase-III scheme
Why in News?
The Union Cabinet has approved the Green Energy Corridor Phase-III (GEC-III) scheme on 30 September 2026., also known as the PM DHARA (Developing Harmonized and Accelerated Renewable Energy Access) scheme.
Financial Outlay & Government Support
- Total Project Outlay: ₹1,86,405 crore allocated to scale up India's green grid.
- Central Financial Support: The Central Government will provide ₹54,082 crore in financial assistance to help keep power tariffs affordable for citizens by offsetting transmission charges.
- Budget Split:
- ₹1,36,378 crore for developing Intra-State Transmission Systems (InSTS).
- ₹50,000 crore for setting up Battery Energy Storage Systems (BESS).
- Power Evacuation: Designed to evacuate up to 135 Gigawatts (GW) of renewable energy across various States and Union Territories.
- Battery Storage Capacity: Incorporates the deployment of 50 Gigawatt-hours (GWh) of BESS. Storage will be set up at developer locations or critical grid intersections to manage non-solar hours and peak demands.
- Implementation Timeline: The targeted completion window spans from FY 2026-27 to FY 2032-33.
- Project Models:
- All new Greenfield projects will be awarded via the Tariff Based Competitive Bidding (TBCB) mode under a Build-Own-Operate-Maintain (BOOM) framework.
- Existing Brownfield upgradation and grid-strengthening work will operate on a Cost Plus Basis (CPB).
- Nodal Agencies: State Transmission Utilities (STUs) will serve as the primary implementing agencies alongside private Transmission Service Providers (TSPs).
- Long-Term Energy Vision: A major stepping stone toward achieving India's goal of 900 GW of installed non-fossil fuel capacity by 2035.
- Grid Flexibility: Resolves major clean energy issues like intermittency (wind/solar fluctuations), peak-hour power curtailment, and local grid congestion.
- Job Creation: Expected to generate substantial direct and indirect employment opportunities across power infrastructure construction, domestic battery manufacturing, and long-term grid operations.
- Environmental Impact: Enhances India's energy security while actively reducing the country's carbon footprint through sustainable growth.
