New Delhi: Renewable energy executives expect the third phase of the Green Energy Corridor (GEC-III) to unlock a new cycle of growth for the sector, because it pairs new transmission lines with battery storage. The Union Cabinet approved the Rs 1.86 lakh crore scheme on Wednesday. It will build an intra-state transmission system with 50 GWh of battery storage to carry 135 GW of renewable energy up to 2032-33.
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According to industry experts, the scheme will do more than improve grid reliability and reduce curtailment, the power that generators produce but cannot feed into the grid. Somesh Kumar, Partner and Leader of Power and Utilities at EY India, said it also sends a clear signal to the market. Transmission investment, he said, will have to keep pace with India's very large ambitions for renewable energy and electricity demand.
Several executives pointed to the shortage of transmission lines as the main problem the scheme addresses. Vinay Rustagi, Chief Business Officer (CBO) at Premier Energies, said the lack of new transmission capacity is delaying the addition of renewable capacity. He called it one of the biggest concerns facing the industry today. The scheme combines 50 GWh of storage with total government funding of Rs 54,000 crore, and Rustagi said he expects it to unlock a new cycle of growth for the sector.
Piyush Goyal, CEO of Volks Energie, said generating capacity has been growing faster than the grid's ability to carry it. Curtailment, he said, has been the quiet cost of that mismatch. He said placing 50 GWh of battery storage at the generator end tackles the problem directly.
Hanish Gupta, Managing Director of Sunkind India, said the government's focus on transmission and battery storage will help speed up renewable energy deployment and make the grid more reliable.
Other executives looked beyond the grid. For Avaada Group Chairman Vineet Mittal, the opportunity for India lies in building the capability to design, manufacture, install and maintain these systems at scale. That, he said, calls for investment in quality, engineering, skilled people and sustained innovation.
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Manish Dabkara, Chairman and Managing Director of EKI Energy, said the initiative also strengthens the foundation for India's domestic carbon market. Credible carbon credits, he said, depend on clean power that actually reaches the grid.