The Union Cabinet has approved a ₹1.86 lakh crore Green Energy Corridor Phase-III programme to strengthen India’s power transmission network and enable the evacuation of up to 135 GW of renewable energy. The scheme brings transmission infrastructure and battery storage together as India prepares for a major expansion of clean power.
The programme, to be implemented by FY2032-33, has a total outlay of ₹1,86,405 crore. Around ₹1,36,378 crore will be used to develop and strengthen intra-state transmission systems, while ₹50,000 crore has been earmarked for 50 GWh of Battery Energy Storage Systems (BESS). The Centre will provide ₹54,082 crore in financial assistance under the scheme.
The initiative addresses a growing challenge for India’s renewable energy sector. Adding solar and wind capacity is only one part of the clean energy transition. Electricity generated at renewable energy projects must also be transported to homes, businesses and industries. Many large renewable projects are located far from major demand centres, making transmission infrastructure critical.
The new Green Energy Corridor will strengthen intra-state transmission networks to help move renewable electricity more efficiently. The expanded network is expected to improve the integration of solar and wind power into the wider electricity grid and support the evacuation of electricity from renewable-rich areas.
Battery storage will provide another layer of flexibility. The planned 50 GWh of Battery Energy Storage Systems can be deployed at renewable energy generation sites or at locations that are important for grid management.
Solar and wind generation naturally varies. Solar output falls sharply after sunset, while wind generation depends on weather conditions. Battery storage can help store electricity when generation is high and release it when demand increases or renewable output declines.
The storage component is also expected to help address renewable energy intermittency, transmission congestion and curtailment. During periods when renewable generation exceeds the available transmission capacity or demand, some electricity may otherwise have to be curtailed. Storage can provide an additional way to use that power later.
The government expects the programme to improve grid flexibility and support more reliable integration of renewable energy. It will also help strengthen the country’s ability to manage changing electricity demand and supply patterns as clean power accounts for a growing share of generation.
The financial support under the programme is aimed at helping states undertake major transmission investments. The Centre’s assistance will help reduce the financial burden associated with intra-state transmission infrastructure and support the development of renewable power evacuation networks.
The programme also provides opportunities for private-sector participation. Greenfield transmission projects will be awarded through Tariff-Based Competitive Bidding, while brownfield projects and network strengthening will follow a cost-plus approach. Transmission service providers selected through competitive bidding will be responsible for building, owning, operating and maintaining the assets.
The scale of the investment is expected to create demand across the power infrastructure sector. Transmission equipment manufacturers, engineering and construction companies, grid technology providers and energy storage developers could see new opportunities as projects are rolled out.
The battery storage component could also support the development of India’s energy storage ecosystem. Demand is expected to increase for batteries, power conversion systems, control equipment and related infrastructure as utilities and renewable energy developers look for ways to manage intermittent electricity generation.
The latest programme builds on India’s earlier Green Energy Corridor initiatives. The first two phases focused on strengthening transmission infrastructure in renewable-rich states and were designed to support the evacuation of around 44 GW of renewable energy.
The third phase substantially increases the scale of planned renewable energy evacuation. It also gives energy storage a much larger role, reflecting the changing requirements of India’s electricity grid.
India is targeting 500 GW of non-fossil fuel-based power capacity by 2030. The country has already expanded its renewable and other non-fossil generation capacity significantly, but achieving the next stage of growth will require major investment in supporting infrastructure.
The transmission network itself is planned to expand considerably in the coming years. India’s transmission network is expected to increase from around 5.09 lakh circuit km in June 2026 to about 6.48 lakh circuit km by 2032. Transformation capacity is also planned to rise from around 1,478 GVA to 2,345 GVA during the same period.
Inter-regional transmission capacity is expected to increase from around 120 GW to 168 GW. This expansion will allow electricity to move more efficiently between regions and provide greater flexibility to the national power grid.
For renewable energy developers, better transmission availability could make it easier to connect new projects to the electricity network. For power distribution companies, greater storage and grid flexibility could provide additional options to manage peak demand and fluctuations in renewable generation.
The programme is also expected to create employment across power infrastructure, construction, manufacturing, engineering and energy storage. As new transmission lines, substations and storage projects are developed, demand is likely to rise for skilled workers and specialised services.
The ₹1.86 lakh crore programme marks a broader shift in India’s renewable energy strategy. The focus is moving beyond simply adding generation capacity towards building the transmission and storage infrastructure needed to use that electricity effectively.
By combining renewable power evacuation with battery storage, the Green Energy Corridor aims to give the electricity grid greater capacity and flexibility. The programme is expected to play an important role in supporting India’s clean energy expansion through 2032-33.