Modi government clears green energy corridor project worth ₹1.86L crore
What's the story
The Union Cabinet has approved a massive ₹1.86 lakh crore scheme to strengthen power networks and facilitate renewable energy transmission in India. The Green Energy Corridor Phase-III (GEC-III) project aims to transmit up to 135GW of renewable energy by FY33. The Indian government plans to spend ₹1,36,378 crore on state-level power transmission systems and another ₹50,000 crore on battery storage as part of this initiative.
Financial aid
Financial support for reducing electricity costs
The Centre will provide ₹54,082 crore in financial support under the GEC-III scheme.
This funding is expected to offset the cost of transmitting power within states and keep electricity costs lower for consumers.
The battery storage systems will be installed at renewable energy developers' and power generators' sites, as well as other locations where they can help the power grid operate more smoothly.
Storage solutions
Battery storage systems to ensure reliable energy supply
The battery storage systems will address one of the major challenges with renewable energy: the intermittent availability of solar and wind power.
These systems will manage fluctuations in renewable power generation, congestion in transmission networks, and excess power during peak periods.
They will also cater to electricity demand when solar power is not available, thus ensuring a more reliable energy supply.
Project implementation
Implementation and bidding process for new transmission projects
New transmission projects under the GEC-III scheme will be awarded through competitive bidding.
Meanwhile, upgrades to existing networks will be carried out on a cost-plus basis.
State transmission utilities will implement this scheme, while private transmission companies can develop and operate projects awarded through competitive bidding under a Build-Own-Operate-Maintain model.
Capacity boost
Job creation and long-term benefits of the GEC-III scheme
The GEC-III scheme is expected to support India's target of achieving 900GW of installed non-fossil fuel capacity by 2035. It will also improve the country's long-term energy security.
The initiative is likely to generate employment opportunities in the power, manufacturing, and construction sectors.
Further, the battery storage program under this scheme is expected to boost jobs in India's domestic energy storage industry.