The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the Green Energy Corridor Phase-II program for intrastate transmission systems.

The program aims to add around 10,750 circuit kilometers (ckm) of transmission lines and 27,500 Mega Volt-Amperes (MVA) transformation capacity of substations. The program will facilitate grid integration and electricity evacuation of around 20 GW of renewable energy projects in states like Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, and Uttar Pradesh.

The Phase-II of Green Energy Corridor will be set up at an estimated cost of ₹120.31 billion (~$1.61 billion). The government will provide 33% of the project cost, which is ₹39.7 billion (~$533.19 million), as central financial assistance (CFA). The CFA is expected to help offset the intra-state transmission charges to help keep the power costs low.

The intrastate transmission system is expected to be developed over five years, from 2021-22 to 2025-26. The system will help achieve the country’s installed renewable energy target of 450 GW by 2030.

Last year, at the COP26 Summit, Prime Minister Narendra Modi announced India’s aim to become a net-zero economy by 2070 and set a target to install a non-fossil energy capacity of 500 GW by 2030.

The Green Energy Corridor Phase-I is under implementation in states like Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Tami Nadu. The Phase-I program is expected to integrate around 24 GW of renewable energy into the grid by 2022.

The corridor will contribute to the country’s long-term energy security and promote sustainable growth by reducing carbon emissions. It is also expected to generate direct and indirect employment opportunities for skilled and unskilled labor in power and other related sectors.

In 2021, the Ministry of Power said that as the intrastate transmission systems have a major share in the country, the adoption of tariff-based competitive bidding can effectively reduce the burden on the state governments. It would also lead to reduced tariffs, benefitting consumers.

Earlier in 2019, Minister of Power RK Singh informed the Lok Sabha that 10,261 MW of renewable energy capacity had been added to the Green Energy Corridor.