Green Energy Corridor Phase-III (GEC-III)

  • October 01, 2026
  • Current Affairs

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Green Energy Corridor Phase-III (GEC-III)

Source: PIB

Why in News?

  • The Union Cabinet has approved the Green Energy Corridor Phase-III (GEC-III) scheme with an outlay of ₹1,86,408 crore.
  • The scheme aims to enable the evacuation of up to 135 GW of renewable energy by FY 2032-33.
  • The scheme includes a dedicated Battery Energy Storage Systems (BESS) component with 50 GWh of storage capacity.
  • GEC-III seeks to address transmission bottlenecks and renewable energy curtailment, which currently affects about 9% of India’s installed capacity.

Key Features

  • GEC-III will focus on developing intra-state transmission systems (InSTS) to integrate large-scale renewable energy projects.
  • The government will provide ₹54,082 crore as Central Financial Assistance to offset intra-state transmission charges.
  • Around 21 GW of India’s renewable energy capacity currently relies on temporary grid connections, causing revenue losses for developers due to evacuation restrictions.

  • The BESS component will help manage the intermittency of renewable energy and maintain grid stability during peak demand and non-solar hours.
  • Greenfield projects will be implemented through Tariff Based Competitive Bidding (TBCB) under the Build-Own-Operate-Maintain (BOOM) model.
  • Brownfield upgradation and network strengthening works will be implemented on a Cost Plus Basis (CPB), with State Transmission Utilities acting as implementing agencies.
  • The Central Financial Assistance will help reduce power costs for end-users by subsidising intra-state transmission charges.

Additional Cabinet Decision

  • The Cabinet has also approved the continuation of a ₹300 subsidy for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for FY 2026-27.
  • The subsidy is estimated at ₹12,001 crore and is expected to benefit more than 10.57 crore households.

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