Daily News Analysis

Green Energy Corridor Phase-II                                                                                                     

10th January, 2022 Environment

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Context: Government approved the scheme on Green Energy Corridor Phase-II for Intra-State Transmission System (InSTS).


About Green Energy Corridor Phase II

Project Timeline: 2021-22 to 2025-26 fiscal years.

Budget outlay:  Rs 12,031 crores.

  • The Central Financial Assistance (CFA) will be 33% of the project cost, that is ₹3,970.34 crore.
  • CFA will help in offsetting the intra-state transmission charges and keep the power costs down.


  • To facilitate grid integration and power evacuation of about 20 GW of renewable energy projects in seven states— Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh.
  • To help India meet the pledge it made at COP26 climate summit.
  • To add around 10,750 ckm of transmission lines and 27,500 MVA of transformation lines and substations under phase II


What is India’s climate commitment?

  • India has pledged to increase its non-fossil fuel power generation capacity to 500 GW by 2030, meeting 50% of its energy requirements.
  • It would help India to bring down its carbon footprint but also save on foreign exchange.


What is the Green Energy Corridor project about?


  • Overseen by: the Ministry of New and Renewable Energy (MNRE).
  • Aims: to “synchronise electricity produced from renewable sources, such as solar and wind, with conventional power stations in the grid”.
  • Significance:
  • It will evacuate the large-scale green energy produced under the Intra State Transmission System (InSTS) project sanctioned by the MNRE in 2015-16.
  • Will link it to the load centre of the national grid so that it can be distributed for use.


Objective of Scheme on Green Energy Corridor

  • To achieve the target of 450 GW installed RE capacity by 2030.
  • To contribute to long-term energy security of the country and promote ecologically sustainable growth by reducing the carbon footprint.
  • To generate large direct and indirect employment opportunities for both skilled and unskilled personnel in power and other related sectors.


GEC Phase-I

  • It is under implementation in Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu for grid integration and power evacuation of about 24 GW of RE.
  • The Phase-I is for addition of 9,700 km of transmission lines and 22,600 MVA capacity of substations having estimated cost of transmission projects of ₹10,141.68 crore, with CFA of ₹4,056.67 crore.


What is Renewable energy?

  • Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, rain, tides, waves, and geothermal heat.