The central government is advancing a new approach to renewable energy transmission through the proposed Green Energy Corridor-III (GEC-III) scheme, aimed at addressing a persistent challenge in India’s clean energy transition: the gap between renewable power generation capacity and the transmission infrastructure required to deliver electricity to consumers.
The mismatch between generation and transmission infrastructure has emerged as an important obstacle to expanding renewable energy deployment. As new renewable energy capacity is developed, adequate transmission networks are essential to move electricity from generation sites to demand centres efficiently.
The GEC-III approach places greater emphasis on private-sector participation in developing the transmission infrastructure needed to support the country’s growing renewable energy capacity. The scheme proposes using competitive bidding for new transmission projects, while taking a different approach to strengthening and upgrading existing networks.
Competitive Bidding to Drive New Transmission Projects
Under the proposed framework, greenfield transmission projects would be developed through competitive bidding. Private transmission service providers would be responsible for building, owning, operating and maintaining the infrastructure.
This model is intended to bring private-sector participation into the development of new transmission assets, with bidding serving as the mechanism for selecting project developers.
The approach represents a shift in emphasis towards private investment and execution in expanding the infrastructure needed to connect renewable energy generation with the wider electricity network.
Existing Networks to Be Upgraded on a Cost-Plus Basis
While new transmission projects would be developed through competitive bidding, brownfield works involving the strengthening or upgrading of existing networks would follow a cost-plus model.
This distinction allows the scheme to address two separate infrastructure requirements: creating new transmission capacity where networks need to expand and improving existing systems where additional capacity or upgrades are necessary.
Both types of work are important to ensuring that transmission infrastructure keeps pace with the growth of renewable energy generation.
Addressing a Key Challenge in India’s Clean Energy Transition
The development of transmission infrastructure is critical to making renewable energy capacity available to consumers. Without sufficient networks to transport electricity, the expansion of generation facilities alone cannot fully address the requirements of the power system.
Through GEC-III, the government is seeking to strengthen the link between renewable energy generation and electricity transmission by outlining different implementation models for new and existing infrastructure.
The proposed emphasis on competitive bidding for greenfield projects and cost-plus implementation for brownfield upgrades reflects an effort to mobilise private-sector participation while continuing to strengthen the existing transmission network.
As India continues to expand its renewable energy capacity, the effectiveness of transmission planning and infrastructure development will remain central to integrating clean electricity into the power system.
Disclaimer: This report has been editorially prepared using publicly available information and official statements. Readers are advised to refer to official announcements for further details.
Author
About the Author
