Can Green Energy Corridor Phase-III reduce renewable curtailment?

Can Green Energy Corridor Phase-III reduce renewable curtailment?

Around one-third of new renewable capacity is getting curtailed due to transmission and grid constraints. The Rs 1.86 lakh crore GEC-III scheme approved by the cabinet looks to address it

Advertisement
    Share:
Clean energy adoption across corporate India remains structurally low. Clean energy adoption across corporate India remains structurally low.
Richa Sharma
  • Oct 1, 2026,
  • Updated Oct 1, 2026 2:15 PM IST

Indian renewable energy growth has been dealing with a serious hurdle of curtailment due to unavailability of transmission infrastructure. The cabinet, on Wednesday, approved the ₹1.86 lakh crore Green Energy Corridor Phase-III (GEC-III) scheme to strengthen India’s Intra-State Transmission System (InSTS) to enable evacuation of up to 135 gigawatts (GW) of renewable energy across states.

Advertisement

It also provides for deployment of 50 GWh of Battery Energy Storage Systems (BESS) at the Renewable Energy (RE) developer/generator end or any other location of importance for grid flexibility to address intermittency, congestion, peak-hour curtailment, and meet non-solar hour demand.

The scheme is set to facilitate grid integration, power evacuation in the states and address the curtailment challenges, say experts.

"Green Energy Corridor Phase-III addresses a critical need. As renewable capacity scales up, evacuation infrastructure has to keep pace, and much of that constraint sits at the state level. Strengthening intra-state transmission and building it ahead of generation is essential to avoid stranded capacity and curtailment,” said Srivatsan Iyer, Global CEO, Hero Future Energies.

The 50 GWh of storage capacity under the scheme will help absorb surplus solar, ease congestion and supply power in non-solar hours. This

Advertisement

"This is how renewable energy becomes firm and dispatchable, which is what the grid increasingly values. Against the CEA's projected requirement of over 236 GWh by 2031-32, it is a meaningful first step. The support on intra-state transmission charges will also help keep costs in check for consumers,” he says.

Integrated planning

By bringing transmission and battery storage into one programme, the scheme recognises that generation, delivery and availability must advance together.

Vineet Mittal, Chairman, Avaada Group, says as storage deployment grows, it can create a larger market for daytime generation and can also support a broader manufacturing opportunity. Solar modules and cells, batteries, transformers, cables, inverters and control systems all form part of the infrastructure required for a more electrified economy. 

Advertisement

“The intra-state focus of this programme deserves particular attention. Electricity must travel through state networks to reach industrial clusters, agricultural communities and growing towns. Strengthening those networks can help states make better use of their renewable resources and improve the delivery of power within their boundaries,” he explains.

Indian renewable energy growth has been dealing with a serious hurdle of curtailment due to unavailability of transmission infrastructure. The cabinet, on Wednesday, approved the ₹1.86 lakh crore Green Energy Corridor Phase-III (GEC-III) scheme to strengthen India’s Intra-State Transmission System (InSTS) to enable evacuation of up to 135 gigawatts (GW) of renewable energy across states.

Advertisement

It also provides for deployment of 50 GWh of Battery Energy Storage Systems (BESS) at the Renewable Energy (RE) developer/generator end or any other location of importance for grid flexibility to address intermittency, congestion, peak-hour curtailment, and meet non-solar hour demand.

The scheme is set to facilitate grid integration, power evacuation in the states and address the curtailment challenges, say experts.

"Green Energy Corridor Phase-III addresses a critical need. As renewable capacity scales up, evacuation infrastructure has to keep pace, and much of that constraint sits at the state level. Strengthening intra-state transmission and building it ahead of generation is essential to avoid stranded capacity and curtailment,” said Srivatsan Iyer, Global CEO, Hero Future Energies.

The 50 GWh of storage capacity under the scheme will help absorb surplus solar, ease congestion and supply power in non-solar hours. This

Advertisement

"This is how renewable energy becomes firm and dispatchable, which is what the grid increasingly values. Against the CEA's projected requirement of over 236 GWh by 2031-32, it is a meaningful first step. The support on intra-state transmission charges will also help keep costs in check for consumers,” he says.

Integrated planning

By bringing transmission and battery storage into one programme, the scheme recognises that generation, delivery and availability must advance together.

Vineet Mittal, Chairman, Avaada Group, says as storage deployment grows, it can create a larger market for daytime generation and can also support a broader manufacturing opportunity. Solar modules and cells, batteries, transformers, cables, inverters and control systems all form part of the infrastructure required for a more electrified economy. 

Advertisement

“The intra-state focus of this programme deserves particular attention. Electricity must travel through state networks to reach industrial clusters, agricultural communities and growing towns. Strengthening those networks can help states make better use of their renewable resources and improve the delivery of power within their boundaries,” he explains.

Read more!
Advertisement