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Green Energy Corridor Phase-III
Context:
The Union government is set to provide financial assistance of approximately ₹22,400 crore to states for the development of intra-state transmission systems under the third phase of the Green Energy Corridor (GEC-III).
Budget and Project Scope
- GEC-III, proposed in the Union Budget for FY26, is estimated to cost around ₹56,000 crore, with the central government covering 40% of the expenses.
- Key beneficiary states include Gujarat, Rajasthan, Karnataka, Maharashtra, and Andhra Pradesh.
- Gujarat is expected to have the highest share, undertaking transmission projects worth over ₹29,000 crore, followed by Rajasthan with projects valued at more than ₹9,000 crore.
Government’s Focus on Energy Transition
- The Ministry of New and Renewable Energy (MNRE) recently held discussions with stakeholders, emphasising the need to accelerate the expansion of the transmission network.
- The initiative aligns with India’s target of achieving 500 GW of non-fossil fuel capacity by 2030, which requires a robust and stable grid to accommodate the intermittent nature of solar and wind energy.
- The previous phases of the Green Energy Corridor are at various stages of implementation across ten states, with the Centre providing up to 40% financial assistance for the projects.
Panchamrit
The Panchamrit refers to India’s five-point action plan to combat climate change, presented at the COP26 conference in Glasgow in November 2021. This plan aims to align economic growth with environmental sustainability and includes the following commitments:
- Achieve 500 GW of non-fossil fuel energy capacity by 2030.
- Meet 50% of energy requirements from renewable sources by 2030.
- Reduce total projected carbon emissions by 1 billion tons by 2030.
- Lower carbon intensity of GDP by 45% by 2030.
- Achieve net-zero emissions by 2070.
Strengthening Renewable Energy Integration
- An MNRE spokesperson highlighted that Phase III aims to strengthen transmission infrastructure for the seamless integration of renewable energy sources.
- The scheme will support states with high renewable energy potential as well as emerging markets, helping to offset costs, reduce tariffs, and attract private investment.
Background and Challenges
- Launched in 2015, the Green Energy Corridor project includes both inter-state and intra-state transmission systems, along with renewable energy management centers and control infrastructure.
- While the third phase focuses primarily on intra-state transmission, previous phases have faced delays due to issues such as right-of-way challenges, land acquisition problems, low bidder turnout leading to re-tendering, court cases, forest clearances, and environmental concerns, including approvals related to the Great Indian Bustard’s habitat.
- The Parliamentary Panel on energy has urged the MNRE to work closely with state governments and other stakeholders to resolve these issues and ensure the timely expansion of transmission infrastructure.
- The ministry has confirmed that Phase III of the Green Energy Corridor is expected to be rolled out in 2025-26.
