Green Energy Corridor III: Tackling India's renewable power bottleneck, Pg15

Key Highlights:

• The Centre approved the third phase of the Green Energy Corridor (GEC-III) with an outlay of Rs 1.86 lakh crore on September 30.
• GEC-III aims to facilitate the evacuation of up to 135 gigawatts (GW) of renewable energy (RE) into the national grid.
• For the first time, GEC-III includes a dedicated battery energy storage component, with provisions for deploying 50 gigawatt-hours (GWh) of Battery Energy Storage Systems (BESS).
• The scheme has a total Central Financial Support of Rs 34,082 crore to help offset intra-state transmission charges.

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Detailed Insights:

• GEC is a flagship government program designed to build dedicated transmission infrastructure for integrating large-scale RE into the national power grid.
• The initiative addresses the growing challenge of grid congestion and transmission bottlenecks, which lead to the curtailment of renewable power.
• Of the total outlay, over Rs 1.30 lakh crore is earmarked for developing Intra-State Transmission Systems (InSTS), and Rs 50,000 crore for BESS.
• Greenfield projects under InSTS will be implemented through the Tariff-Based Competitive Bidding (TBCB) route, encouraging private sector participation.
• Brownfield upgrades and network strengthening works will be undertaken on a Cost-Plus Basis (CPB).
• State transmission utilities will serve as overall implementing agencies, with the scheme targeted for completion by FY33.
• GEC-III is expected to support 135 GW of infrastructure creation at the state level, out of an anticipated 160 GW needed by 2030-36.
• The scheme will expand GEC's geographical coverage, with proposals received from at least 18 states, compared to 8 states for GEC-I and 7 for GEC-II.
• A steering committee at the Cabinet Secretary level will monitor the progress of GEC-III and GEC-II twice a year.
• In FY20, approximately 6,900 GWh of clean electricity faced restrictions due to a mismatch between RE deployment and transmission infrastructure.

Key Concepts Involved:

• Green Energy Corridor (GEC): A government program to build transmission infrastructure for integrating renewable energy into the national grid.
• Renewable Energy (RE) Evacuation: The process of transferring electricity generated from renewable sources to consumption points.
• Battery Energy Storage Systems (BESS): Technology that stores excess renewable electricity and discharges it when demand is high.
• Tariff-Based Competitive Bidding (TBCB): A procurement model where private companies bid to develop and operate projects at a competitive tariff.
• Cost-Plus Basis (CPB): A procurement model where project costs and an approved return are recovered through a regulated tariff.