The Union Cabinet has approved the Green Energy Corridor Phase-III (GEC-III), a Rs 1,86,405 crore scheme to move renewable electricity from where it is generated to where it is consumed.

The scheme, cleared on September 30, has two parts. Rs 1,36,378 crore goes to intra-state transmission systems, and Rs 50,000 crore funds 50 GWh of battery energy storage. The Centre will provide Rs 54,082 crore as financial assistance, including Rs 45,005 crore for transmission and Rs 6,000 crore in viability gap funding for storage.

The target is to evacuate about 135 GW of renewable energy by financial year 2032-33. Physical goals include roughly 51,126 circuit kilometres of new transmission lines and 2,28,903 MVA of transformation capacity across states.

The reason is simple. India is adding solar and wind capacity faster than its grid can carry it, forcing operators to switch off clean power at times. Storage addresses the stop-start nature of renewables, covering peak hours and periods without sun or wind.

The scheme supports India's goal of 900 GW of non-fossil capacity by 2035. Information and Broadcasting Minister Ashwini Vaishnaw said it would create jobs in manufacturing, construction and energy storage. The UN climate chief also praised the move, saying stronger grids deliver big dividends.

For consumers, central assistance offsets intra-state transmission charges, which should keep power costs down. The government estimates the support will unlock about Rs 1.32 lakh crore in transmission investment and enable renewable investment of around Rs 4.6 lakh crore.