Eye on transmission bottlenecks, Cabinet clears green energy plan, Pg5

Key Highlights:

• The Union Cabinet approved the Green Energy Corridor Phase-III (GEC-III) scheme with an outlay of Rs 1,86,408 crore.
• The scheme aims to enable the evacuation of up to 135 GW of renewable energy by FY 2032-33.
• It includes a dedicated Battery Energy Storage Systems (BESS) component, providing for 50 GWh of storage capacity.
• GEC-III seeks to address transmission bottlenecks and curtailment of renewable energy, which currently affects about 9% of India's installed capacity.
• A central financial support of Rs 54,082 crore will be provided to offset intra-state transmission charges.
• The Cabinet also approved the continuation of a Rs 300 subsidy for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for FY 2026-27.

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Detailed Insights:

• The GEC-III scheme focuses on developing intra-state transmission systems (InSTS) to integrate large-scale renewable energy projects.
• The BESS component is crucial for managing the intermittency of renewable energy sources and ensuring grid stability during peak demand or non-solar hours.
• Currently, around 21 GW of India's renewable energy capacity relies on temporary grid connections, leading to revenue losses for developers due to evacuation restrictions.
• The scheme's implementation for greenfield projects will be through Tariff Based Competitive Bidding (TBCB) on a Build-Own-Operate-Maintain (BOOM) model.
• Brownfield upgradation and network strengthening works will be executed under a Cost Plus Basis (CPB), with State Transmission Utilities as implementing agencies.
• The Central Financial Assistance (CFA) aims to reduce power costs for end-users by subsidizing intra-state transmission charges.
• The subsidy for PMUY beneficiaries, estimated at Rs 12,001 crore, will benefit over 10.57 crore households.

Key Concepts Involved:

• Green Energy Corridor (GEC): A network of transmission lines and substations designed to evacuate renewable energy from generation sites to consumption centers.
• Battery Energy Storage Systems (BESS): Technologies that store electrical energy for later use, crucial for grid stability and managing intermittent renewable power.
• Tariff Based Competitive Bidding (TBCB): A procurement method where bidders compete on the tariff (price) for a service or project.
• Pradhan Mantri Ujjwala Yojana (PMUY): A flagship scheme launched by the Government of India to provide clean cooking fuel (LPG) to women from Below Poverty Line (BPL) households.