The Green Energy Corridor (GEC) Scheme (Economy)

The Green Energy Corridor (GEC) Scheme (Economy)

The Green Energy Corridor (GEC) Scheme (Economy)

Why In News:

The third phase of the Green Energy Corridor (GEC) scheme is in its final stages of preparation and likely to be placed before the Cabinet for approval, as India scales up transmission infrastructure to support its renewable energy targets.

Source: The Hindu, Page 13, 11 August 2026 - 'GEC third phase in final stages, up for Cabinet approval'

About the Scheme

What is GEC: The Green Energy Corridor is a flagship transmission infrastructure scheme to evacuate large-scale renewable power from generation-rich states to consumption centres.

Two components: GEC has two broad components: the Inter-State Transmission System (ISTS) and the Intra-State Transmission System (InSTS), along with Renewable Energy Management Centres (REMCs).

Phase I & II: Focused on building thousands of kilometers of intra-state transmission lines with financial support from the central government and international agencies like Germany's KfW.

Phase III scope: GEC-III, under planning, is estimated to involve an investment of around Rs. 56,000 crore, with Central Financial Assistance of about 40% of the project cost.

Larger goal: GEC Phases III and IV together aim to support the 500 GW non-fossil capacity target by 2030.

Implementing agencies: The scheme is implemented by State Transmission Utilities (STUs), with funding support from the Ministry of New and Renewable Energy and loans from agencies like the REC (Rural Electrification Corporation Limited), and PFC (Power Finance Corporation Limited).

Key Facts for Prelims

Global linkage: GEC supports India's 'One Sun, One World, One Grid' (OSOWOG) initiative for a globally interconnected renewable energy grid.

REMC role: Renewable Energy Management Centres, set up under GEC, use real-time data to forecast renewable generation and manage grid balancing.

Key institutions: The Central Electricity Authority (CEA) and POWERGRID, a Maharatna Central Public Sector Enterprise, play key roles in India's transmission planning.