Written by PPL Newsroom• October 2, 2026• 4:36 am• Innovation

Cabinet clears Rs 1.86 lakh crore plan to carry 135 GW of renewable power

Green Energy Corridor Phase-III will strengthen state-level transmission and add 50 GWh of battery storage by 2032-33, so clean power reaches consumers.

The Union Cabinet on Wednesday approved the Green Energy Corridor Phase-III scheme, with an outlay of Rs 1.86 lakh crore. It will build intra-state transmission lines with battery storage to evacuate 135 GW of renewable energy. The decision, announced on 30 September 2026, aims to make sure the power from new solar and wind plants can actually reach homes and industry.

What the scheme funds

According to the official statement, the total outlay is Rs 1,86,405 crore. Of this, Rs 1,36,378 crore is for intra-state transmission systems, and the scheme carries central financial support of Rs 54,082 crore. Another Rs 50,000 crore is set aside for 50 GWh of battery energy storage systems. The target is to complete the work by FY 2032-33.

In everyday terms, “evacuation” means moving electricity from where it is generated to where it is used. A solar park in a sunny district is of little use if the lines leaving it are full. Central assistance is meant to offset intra-state transmission charges and so keep power costs down.

The problem it addresses

Curtailment is the practice of grid operators limiting output from renewable sources to maintain grid stability. Reporting based on Power Ministry data puts the scale of the gap in perspective. Nearly 21 GW, about 9% of India’s installed renewable capacity, is connected through temporary arrangements while waiting for dedicated transmission. That gap holds back around 12 GW of power during peak solar hours.

Batteries are the second half of the answer. Storage lets utilities shift power to the hours when demand is highest and solar generation has dropped. The same report says India has about 8.66 GWh of large-scale battery storage installed, against a projected need of 236 GWh by 2031-32, so the 50 GWh planned here covers part of that distance.

Minister Ashwini Vaishnaw said, after the Cabinet meeting, that adequate transmission capacity is critical as renewable generation rises, and that grid infrastructure should come up ahead of new projects.

What this means for India

India’s renewable capacity has grown from under 35 GW in 2014 to over 197 GW, excluding large hydro, according to the Ministry of New and Renewable Energy. The ministry says the focus is now moving from adding capacity to absorbing it into the grid. GEC-III targets that gap. The government links it to the goal of 500 GW of renewable capacity by 2030. Prime Minister Narendra Modi has also tied it to a 900 GW non-fossil target for 2035. The government expects jobs in construction, manufacturing and grid operations.

What happens next

The scheme works through states’ own transmission networks, so progress will depend on how quickly state utilities and developers build the lines and storage. The government says it expects the programme to create employment in the power, manufacturing and construction sectors, and long-term skilled jobs in operation, maintenance and grid management.

The scheme has drawn international attention. UN climate chief Simon Stiell called it a major step forward that will deliver significant benefits for India’s people and economy.

This is the third phase of a programme that was originally designed to strengthen transmission networks in states with high renewable-energy potential. Phase-II included a separate inter-state line to carry power from a planned 13 GW renewable project in Ladakh. The latest phase focuses on the state networks that feed the national grid.