India plans to integrate 135 GW of renewable energy through phase-III of the Green Energy Corridor scheme
It plans for 50 GWh of battery storage deployment to improve grid flexibility and support renewable energy integration
The government has allocated INR 1.86 trillion for transmission infrastructure and storage deployment under GEC-III, with completion targeted for FY 2032-33
India’s Union Cabinet has approved the third phase of the Green Energy Corridor (GEC-III) to strengthen intra-state transmission infrastructure. The scheme will enable the evacuation of up to 135 GW of renewable energy and provides for the deployment of 50 GWh of battery energy storage systems (BESS).
Prime Minister Narendra Modi chaired cabinet approved the ‘historic’ initiative that will evacuate renewable energy capacity across states and union territories. It said this will strengthen the country’s Inter-state Transmission system (InSTS).
Transmission constraints remain a barrier to renewable energy integration in India, with 300 GWh curtailed in Q1 2026, nearly two-thirds of the national total, according to Ember.
Under GEC-III, the battery systems will be installed at renewable energy developer or generator sites, or at other strategically important locations to improve grid flexibility. They are expected to help manage fluctuations in renewable power generation, ease transmission congestion and reduce peak-hour curtailment, while meeting electricity demand during non-solar hours, the government said.
The Union Cabinet said the 50 GWh BESS deployment would support domestic manufacturing and create employment opportunities.
The scheme will be implemented by State Transmission Utilities, while Transmission Service Providers (TSPs) will participate in greenfield projects awarded through tariff-based competitive bidding (TBCB) on a Build-Own-Operate-Maintain (BOOM) model. Upgrades to existing networks will be implemented on a Cost Plus Basis (CPB).
The scheme has a total estimated outlay of INR 1,86,405 crore, including INR 1,36,378 crore for the development of transmission infrastructure, and INR 50,000 crore for battery storage deployment. The scheme is targeted for completion by FY 2032-33 and includes INR 54,082 crore in Central Financial Assistance (CFA).
According to the government, the CFA would help offset intra-state transmission charges and reduce power costs for consumers. The government said the scheme would support India's target of reaching 900 GW of installed non-fossil fuel capacity by 2035 and create employment in the power, manufacturing and construction sectors.
Previously the Ministry of Power (MoP) had said that through the GEC and ISTS schemes, the government aims to integrate over 500 GW of non-fossil fuel capacity by 2030, and over 600 GW by 2030 (including both GEC-I and GEC-II). Under its first two phases, GEC-I and GEC-II, the government targeted the evacuation of 44 GW of renewable energy across 10 states. Of this, 26 GW had been integrated as of March 2026.
Beyond transmission expansion, the government is promoting battery and pumped storage to address renewable energy intermittency. According to a March 2026 MoP statement, the National Electricity Plan (NEP) considers 47 GW of BESS integration by FY 2031-32.
The Ministry of Heavy Industries is also implementing an INR 18,100 crore PLI scheme to establish 50 GWh of ACC battery manufacturing capacity, including 10 GWh for grid-scale storage.
