The government is in the final stages of preparing the third phase of the intra-state Green Energy Corridor (GEC), with the proposed scheme now awaiting final approval from the Union Cabinet.
According to senior government officials, the third phase is expected to have an outlay of more than ₹50,000 crore and will focus primarily on strengthening transmission infrastructure in states with high renewable energy potential.
The expansion comes as India rapidly adds solar and wind capacity and faces the growing challenge of moving renewable electricity from generation centres to areas with higher power demand.
Phase III to Focus on Renewable-Energy Rich States
Unlike conventional power projects, large solar and wind installations are often concentrated in regions with abundant sunlight and wind resources.
The proposed third phase will therefore focus on developing additional intra-state transmission networks in renewable-energy-rich states.
These transmission lines will help evacuate renewable electricity from generation locations and transport it to other parts of the state where it can be integrated into the wider power grid.
A senior government official said the government is looking at a dedicated scheme for renewable-energy-rich states to develop transmission infrastructure capable of moving renewable power from one location to another.
Target to Evacuate 135 GW of Renewable Energy
The scale of the proposed programme is significant.
According to the Union Ministry of New and Renewable Energy’s submission to the Parliamentary Standing Committee on Energy on August 6, the third phase aims to provide transmission infrastructure capable of evacuating around 135 GW of renewable energy.
The additional transmission capacity will become increasingly important as India moves toward its long-term clean-energy targets and continues expanding solar and wind installations.
The Green Energy Corridor is designed to connect renewable-energy generation areas with the conventional electricity grid, allowing intermittent renewable power to be integrated more effectively into the national electricity system.
Phase II Still Under Implementation
The government is simultaneously working to complete the second phase of the Green Energy Corridor.
Most packages under Phase II have already been awarded and the projects are expected to be completed over the next two years.
Officials said the third phase is being planned alongside the ongoing implementation of Phase II to ensure that transmission infrastructure keeps pace with the rapid expansion of renewable generation.
The development of transmission networks has become increasingly important as solar and wind capacity grows and electricity grids need greater flexibility to handle variable renewable generation.
Delays Have Affected Earlier Phases
The Parliamentary Standing Committee on Energy has also highlighted several challenges that have affected the implementation of the first two phases.
For Phase I, key issues included:
- Right-of-way (RoW) challenges
- Delays in awarding projects
- Forest clearances
- Great Indian Bustard (GIB)-related clearances
The committee noted that seven of the eight states involved in Phase I have completed their work, with Gujarat being the exception.
Phase II Faces Regulatory and Tendering Challenges
The second phase has encountered a different set of challenges.
The parliamentary committee highlighted issues including:
- Limited participation of states during the tendering process
- Tender-related consultations
- Regulatory issues
- Delays in project implementation
Several states involved in Phase II have sought extensions, while the Ministry has been monitoring progress through dedicated review mechanisms.
The committee has urged the Ministry of New and Renewable Energy to work closely with the states to resolve outstanding issues and ensure that transmission projects are completed as planned.
Transmission Key to India’s Clean Energy Expansion
The proposed Phase III reflects a broader shift in India’s renewable energy strategy.
With solar and wind capacity expanding rapidly, adding generation capacity alone is no longer sufficient. India also needs high-capacity transmission lines, energy storage, flexible generation and modern grid-management systems to ensure that renewable electricity can be delivered reliably.
The Green Energy Corridor is expected to play a central role in this transition by connecting renewable-energy-rich regions with demand centres and strengthening the country’s electricity grid.
If approved by the Union Cabinet, the ₹50,000-crore-plus Phase III programme could become another major investment in India’s clean-energy infrastructure and support the evacuation of up to 135 GW of renewable power.
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