Which States Could Benefit From New Power Infrastructure?
The growth of the renewable energy sector in India is driving up the demand for robust transmission infrastructure and energy storage solutions. As the renewable energy sector continues to expand, India’s need for efficient and reliable energy transmission and storage solutions also grows. Green Energy Corridor Phase-III (GEC-III) is designed to make the power grid capable of more power transfers between different parts of the state, as well as to facilitate the integration of the expanding solar and wind power generation.
What is the Green energy corridor Phase-III?
The Green Energy Corridor Phase-III (GEC-III) is a key government program for the growth of India’s intra-state transmission grid and inclusion of more renewable energy in the national grid. The scheme was approved by the Union Cabinet on 30th September, 2026, which aims to support evacuation of renewable energy of up to 135 GW by FY2032-33 across States and Union Territories.
The total cost of the programme is ₹1,86,405 crore, of which ₹1,36,378 crore is for intra-state transmission systems and ₹50,000 crore is for 50 GWh of Battery Energy Storage Systems (BESS). The Centre will allocate ₹54,082 crore as Central Financial Support to help mitigate the effect on power costs, as this is being used to compensate intra-state transmission charges.
The BESS component is an additional aspect of the scheme. The proposed 50 GWh battery storage will be installed at locations of renewable energy generation or at other key grid points. It is designed to meet problems like intermittency in renewable energy, congestion in the transmission network, curtailment during peak hours and demand at times other than solar hours.
This is important especially while India continues to scale up its renewable energy generation capacity. As per the existing Green Energy Corridor programme, 17,686 circuit km of transmission lines and 47,177 MVA of substations have been sanctioned in 10 states for evacuation of 44 GW of renewable capacity, of which 9,856 circuit km and 24,300 MVA has been commissioned as per the latest government update.
Why India needs a stronger transmission network
India’s renewable energy capacity has increased drastically and is now available at approximately 263 GW as of January 2026. At the same time, transmission lines were being constructed for another 207 GW of new wind and solar projects. This again reinforces the importance of growth of the grid along with renewable power.
The Indian transmission grid (220 kV and above) now extends to 5 lakh circuit km with 27,500 circuit km of intra-state transmission lines now being implemented. It is hoped that GEC-III will further expand this network and enhance the evacuation of Renewable Power from Generation centres to Demand centres. The need is especially crucial for solar and wind energy, the intermittent generation sources. Improved use of renewable electricity and reduction of congestion can be achieved by strengthening transmission combined with storage.
How will GEC-III be implemented?
For intra-state transmission, the ₹1.36 lakh crore component of GEC-III will implement various models depending on the type of project. Upgrades to the greenfield transmission projects will be undertaken via Tariff Based Competitive Bidding (TBCB) and upgrades for strengthening the network and to the brownfield projects will be done under Cost Plus Basis (CPB).
The overall implementing agencies will be the State Transmission Utilities (STUs). The competitive-bidding route will involve the involvement of the Transmission Service Providers (TSPs) in the development and long-term operations of the transmission assets through a Build-Own-Operate-Maintain (BOOM) approach. This is meant to be a mix of new transmission capacity and reinforcing existing transmission networks to ready state grids for greater integration of renewables.
States that might benefit from Renewable Energy
GEC-III is especially significant for states with significant renewable energy generation potential, where transmission capacity must grow with new projects. In the previous stages of Green Energy Corridor 10 states; Rajasthan, Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh, Maharashtra, Madhya Pradesh, Kerala, Uttar Pradesh, and Himachal Pradesh were included, with the provision of infrastructure to transmit 44 GW of renewable power.
In addition, these states are significant markets for renewables in India. By June 2026, Gujarat has installed 16,086 MW of wind power, Tamil Nadu 12,273 MW and Karnataka 8,896 MW, which is generous renewable power generation to be catered by transmission networks.
The expanded transmission network might prove to be a key artery connecting renewable rich areas to electricity demand centres with GEC-III aiming at 135 GW of renewable-energy evacuation.
Green Energy Corridor Phase I and II
The Green Energy Corridor Phase 1 & 2 traces back to 2012-13, work started in 2015. The first priority was creating dedicated transmission infrastructure for renewable-energy evacuation.
Green Energy Corridor Phase I
Phase I was approved in 2015, focused on eight states with strong renewable potential; Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Tamil Nadu.
The plan aimed to build about 9,767 circuit km of transmission lines. It also targeted 22,689 MVA of substation capacity. The intent was to help bring in around 24 GW of renewable energy. The total outlay was ₹10,141.68 crore. As of July 2023, around 8,940 circuit km of transmission lines and 21,293 MVA of substations had been completed.
Green Energy Corridor Phase II
Phase II was approved in January 2022. The scope widened to cover Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, and Uttar Pradesh.
It was initially planned to develop around 10,750 circuit km of transmission lines and 27,500 MVA of substations, facilitating the integration of approximately 20 GW of renewable energy. The approved project cost was ₹12,031.33 crore with 33% or ₹3,970.34 crore provided as Central Financial Assistance.
Together, GEC-I and GEC-II were designed to facilitate the evacuation of around 44 GW of renewable energy. As of March 2026, the government reported that 26 GW had been integrated through these phases.
Conclusion
Green Energy Corridor Phase-III is a combination of transmission infrastructure and battery storage. The scheme, which is expected to have an outlay of ₹1.86 lakh crore and a target of 135 GW evacuation, has the potential to contribute significantly to the development of a more flexible and reliable clean energy grid.
