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India approves green energy corridor to move 135 GW of renewable power

India approves green energy corridor to move 135 GW of renewable power

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Cabinet clears ₹1.86 lakh crore plan for transmission lines and 50 GWh of battery storage

Today: Cabinet approves GEC-III with ₹1.86 lakh crore outlay

Overview

Updated 1 hour ago

India's grid can't move the renewable power it generates. About 21 GW of clean energy runs on temporary connections, and 12 GW gets cut off during peak solar hours. The Union Cabinet approved a ₹1.86 lakh crore program to fix that.

The Green Energy Corridor Phase-III builds intra-state transmission lines to carry 135 GW of renewable power and adds 50 GWh of battery storage. The central government will contribute ₹54,082 crore, with completion targeted by March 2033.

Why it matters

India's renewable buildout is outpacing its grid. Without new transmission and storage, solar and wind power gets curtailed and developers lose revenue.

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Key Indicators

135 GW
Renewable evacuation capacity target
Intra-state transmission lines built under GEC-III will carry up to 135 GW of renewable power.
50 GWh
Battery energy storage capacity
Battery systems deployed at renewable plants or grid locations to absorb surplus solar and discharge during evening peaks.
₹1,86,405 crore
Total program outlay
Includes ₹1,36,378 crore for transmission systems and ₹50,000 crore for battery storage.
6,900 GWh
Renewable energy curtailed in FY26
Clean electricity that faced restrictions because transmission infrastructure lagged behind renewable deployment.

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People Involved

Organizations Involved

Timeline

June 2026 October 2026

3 events Latest: Today
  1. Cabinet approves GEC-III with ₹1.86 lakh crore outlay

    Today Policy

    Union Cabinet clears the Green Energy Corridor Phase-III scheme to build transmission for 135 GW of renewable power and deploy 50 GWh of battery storage by FY 2032-33.

  2. MNRE reports 8,133 GWh solar curtailed in April-June

    Report

    Grid operators cut solar generation to maintain grid security during record peak demand of 270 GW, highlighting transmission bottlenecks.

  3. GEC Phase-II reaches 85 of 95 packages awarded

    Implementation

    Government data shows 1,124 km of transmission lines charged and 6,860 MVA of substation capacity commissioned under the earlier phase.

Scenarios

1

GEC-III transmission built on schedule, 135 GW evacuation by 2033

Possible Resolves by Q1 2033

Discussed by: Ministry of Power planning documents

Greenfield projects move through tariff-based competitive bidding without major delays. State utilities clear right-of-way hurdles, and the full 135 GW of evacuation capacity comes online by the March 2033 deadline. Battery storage deployment follows the same schedule.

2

Right-of-way disputes delay GEC-III past 2033

Possible Resolves by Q1 2033

Discussed by: Indian Express, citing a parliamentary panel report

Compensation for right-of-way has been the main cause of transmission delays in GEC Phase-II. If the same disputes hit Phase-III, completion slips past the target date. The parliamentary panel's report on Phase-II delays suggests this pattern could repeat at a larger scale.

3

Battery storage deployment cuts renewable curtailment sharply

Possible Resolves by Q1 2030

Discussed by: MNRE, grid operators

The 50 GWh of battery storage absorbs surplus solar during the day and discharges in the evening. If deployed on schedule, annual curtailment drops well below the 6,900 GWh recorded in FY26. This scenario depends on storage projects clearing regulatory and financing hurdles.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2021-2026

Green Energy Corridor Phase-II (ongoing)

India's second green energy corridor, covering 7 states, targets 7,863 km of transmission lines and 24,388 MVA of substation capacity. As of June 2026, 85 of 95 packages had been awarded, with 1,124 km of lines charged.

Then

Right-of-way compensation disputes emerged as the main cause of transmission delays, according to a parliamentary panel report.

Now

The Phase-II experience shaped GEC-III's design, which separates greenfield bidding from brownfield upgrades and assigns state utilities as implementing agencies.

Why this matters now

Phase-III builds on the same framework at a much larger scale, adding 135 GW of evacuation capacity and 50 GWh of battery storage that Phase-II did not include.

April 2025-March 2026

India's renewable curtailment crisis (FY26)

Around 6,900 GWh of clean electricity faced restrictions because transmission infrastructure lagged behind renewable deployment. In April-June 2026 alone, grid operators curtailed 8,133 GWh of solar power during record peak demand of 270 GW.

Then

Developers faced revenue losses as their plants were cut off during peak solar generation hours, raising concerns about project financial viability.

Now

The curtailment data provided the evidence base for GEC-III, which pairs transmission expansion with battery storage to absorb surplus generation.

Why this matters now

GEC-III is a direct response to this problem. Its transmission lines and storage systems are designed to eliminate the bottleneck that caused the curtailment.

Sources

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