India launches GEC-III scheme to boost intra-state renewable power transmission
The central government unveiled the Green Energy Corridor-III program, a ₹1.86 trillion plan that uses competitive bidding to expand intra-state transmission lines and add battery storage for renewable electricity.
After lengthy deliberations, the Indian government introduced the Green Energy Corridor-III (GEC-III) scheme to address the gap between renewable generation and transmission capacity within states. Private transmission service providers will bid for greenfield projects under tariff-based competitive bidding, while brownfield upgrades will be financed on a cost-plus basis. With a total outlay of ₹1.86 trillion and ₹54,082 crore of central financial assistance, the program targets the construction of infrastructure to support 135 GW of renewable power and 50 GWh of battery energy storage.
The Ministry of New and Renewable Energy highlighted that stronger intra-state grids will lower curtailment, provide certainty to developers and help meet renewable consumption obligations. Experts caution that overly aggressive bids could create stranded assets, urging robust net-worth criteria for participants. The initiative aligns with India’s broader goal of expanding non-fossil generation to 500 GW by 2030 and ultimately 786 GW by 2036.
Why it matters
Improved transmission and storage will unlock more renewable power, reducing reliance on fossil fuels and supporting India's climate targets.
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