Eye on transmission bottlenecks, Cabinet clears green energy plan

Why in the News

For the first time, India’s Green Energy Corridor (GEC) programme will fund battery storage alongside transmission lines, so that solar power is not wasted for want of grid capacity. The Union Cabinet has approved Green Energy Corridor Phase-III (GEC-III) to evacuate up to 135 gigawatts (GW) of renewable energy across States, with completion targeted by FY 2032-33.

What is GEC-III, and why is it needed?

1. What it is: GEC-III builds transmission lines and storage to evacuate renewable power, meaning carry it out of solar and wind plants into the grid. It is like widening the roads out of a busy factory town.
2. Grid bottleneck: Peak power demand keeps hitting record highs, yet grid operators are forced to curtail (switch off) solar generation because transmission lines cannot carry it.
3. The takeaway: Without new lines and storage, added solar capacity is wasted, so GEC-III is central to the Prime Minister’s stated push towards 900 GW of non-fossil capacity by 2035.

How large is the transmission gap?

1. Temporary connections: Close to 21 GW, about 9% of installed renewable capacity, runs on temporary grid connections, awaiting dedicated transmission lines.
2. Peak-hour limits: Around 12 GW of this faces evacuation restrictions at peak solar hours, so developers lose revenue and several projects’ financial viability is in doubt.
3. Lost clean power: In FY 2025-26, around 6,900 gigawatt-hours (GWh) of clean electricity faced restrictions because renewable capacity grew faster than transmission.

What are the components of GEC-III?

1. Storage at generation, Battery Energy Storage Systems (BESS): 50 GWh of storage at renewable developer or generator sites, or other grid-critical locations, with an outlay of Rs 50,000 crore; primary stakeholder: renewable energy developers and generators.
2. Evacuation, Intra-State Transmission System (InSTS): New and upgraded intra-State transmission lines, with an outlay of Rs 1,36,378 crore; primary stakeholder: State transmission utilities.
3. Total outlay: The scheme costs Rs 1,86,405 crore, of which the Centre gives Rs 54,082 crore as central financial assistance (CFA).
4. Purpose of central support: The CFA offsets intra-State transmission charges, keeping power costs lower for end consumers.
5. Purpose of storage: Batteries store surplus solar power and release it later:
   • supply stays steady through intermittency, the rise and fall of solar output with sunlight;
   • less power is switched off when lines are congested at peak solar hours;
   • stored power meets demand in non-solar hours.

How will the projects be built?

1. Greenfield lines: All new InSTS projects will be awarded through Tariff Based Competitive Bidding (TBCB), where the bidder quoting the lowest tariff wins.
2. Brownfield upgrades: Upgrading and strengthening existing networks will run on a Cost Plus Basis (CPB), where the utility recovers its approved cost plus a return.
3. Implementing agency: State transmission utilities will be the overall implementing agency.
4. Private builders: Transmission service providers (TSPs) will bid under TBCB on a Build-Own-Operate-Maintain (BOOM) model, so they finance, own and run the lines.

Challenges

1. Right of way: New lines need land and right-of-way clearance across farms and forests, which often delays transmission projects.
2. Weak State utility finances: Loss-making State power utilities may struggle to fund their share of the investment.
3. Battery import dependence: India imports nearly all its lithium and cobalt, so storage costs depend on foreign supply chains.
4. Timeline mismatch: The scheme runs into the next decade, but renewable capacity is added every year, so curtailment can persist meanwhile.

Way Forward

1. Time-bound clearances: States should fix time-bound right-of-way and land approvals for GEC-III lines.
2. Congested zones first: State transmission utilities should first build lines where plants run on temporary connections.
3. Domestic battery cells: The Centre should link BESS procurement to domestic cell manufacturing under the Production Linked Incentive (PLI) scheme for advanced chemistry cells.
4. Transparent bidding: States should publish TBCB awards and completion timelines so private builders stay accountable.

Conclusion

GEC-III shifts India’s renewable push from adding capacity to moving and storing the power already produced. Whether State utilities award and finish the lines on time will decide how quickly curtailment falls.

Matching Previous Year Question

“[2026] Which of the following statements with regard to Green Hydrogen is/are correct? 1. It is decarbonized hydrogen obtained from natural gas reforming combined with carbon capture and storage (CCS). 2. It is produced using electrolysis of water with electricity generated by renewable energy. 3. National Green Hydrogen Mission of India aims for abatement of nearly 50 MMT of annual greenhouse gas emissions by 2030. (a) 1 only (b) 2 and 3 only (c) 2 only (d) 1, 2 and 3 Answer: B”