September 30, 2026: The Union Cabinet has approved the third phase of the Green Energy Corridor (GEC-III), a ₹1,86,405 crore transmission and energy-storage programme aimed at strengthening India’s intra-state power networks and enabling the evacuation of up to 135 GW of renewable energy.
The programme, targeted for completion by FY2032-33, combines transmission infrastructure with large-scale battery storage as India prepares to integrate a significantly larger share of solar and wind power into its electricity grid.
Of the total outlay, ₹1,36,378 crore has been earmarked for developing and strengthening intra-state transmission systems, while another ₹50,000 crore has been allocated for deploying 50 GWh of Battery Energy Storage Systems (BESS).
The government will provide ₹54,082 crore in central financial support under the scheme. The support is intended to offset a portion of intra-state transmission charges and help contain the impact of new grid infrastructure on electricity costs.
Storage moves closer to the centre of the grid
The inclusion of 50 GWh of BESS is a significant component of GEC-III. The storage systems can be deployed at renewable energy generation sites or other strategically important locations to provide flexibility to the grid.
The government expects the storage capacity to help address several challenges associated with renewable power, including intermittency, transmission congestion, peak-hour curtailment and demand during non-solar hours.
This means the programme is not limited to building transmission lines to carry electricity from renewable-energy projects. It also seeks to create the storage infrastructure required to make that power more flexible and usable across different periods of the day.
Competitive bidding for new transmission projects under GEC-III
Under GEC-III, greenfield intra-state transmission projects will be awarded through Tariff Based Competitive Bidding (TBCB).
Brownfield projects involving network upgrades and strengthening will be implemented on a Cost Plus Basis. State Transmission Utilities will act as the overall implementing agencies, while Transmission Service Providers will participate in competitively bid projects under a Build-Own-Operate-Maintain (BOOM) model.
The approach is expected to create opportunities across transmission development, equipment manufacturing, engineering, construction and grid-management services.
A larger role for India’s battery-storage industry
The 50 GWh BESS component also creates a sizeable pipeline for India’s emerging energy-storage ecosystem.
The government’s broader transmission planning already incorporates battery storage alongside renewable generation to manage intermittency and improve grid reliability. Earlier government data indicated that around 47 GW of BESS had been considered for integration into the transmission system by 2031-32.
GEC-III adds a dedicated 50 GWh storage deployment programme, potentially creating demand for battery systems, power-conversion equipment, energy-management systems, system integration and long-term operations and maintenance.
For domestic BESS manufacturers and startups, the opportunity will ultimately depend on how projects are tendered and how much of the procurement is captured by Indian suppliers.
Supporting India’s 2035 non-fossil target
The government expects GEC-III to support its target of reaching 900 GW of installed non-fossil-fuel capacity by 2035.
Beyond renewable-power evacuation, the programme is also expected to support investment and employment across the transmission, power-equipment, manufacturing and construction sectors. The government has specifically identified BESS manufacturing and deployment as an area that could generate additional employment in the domestic energy-storage industry.
The broader objective is clear: as India adds more renewable generation, the grid will need to expand not only in size but also in its ability to store, balance and dispatch power when renewable generation is unavailable.
GEC-III therefore represents a shift from simply adding renewable capacity to building the transmission and storage infrastructure needed to make a renewable-heavy electricity system work at scale.
