Green Energy Transition: Removing Transmission and Storage Bottlenecks

03 Oct 2026

Tags: Economy   Infrastructure   Energy Sector

Source: The Indian Express

Context: India has crossed 300 GW of installed renewable-energy capacity and ranks among the world's leading renewable-energy deployers, but rapid capacity addition has not always translated into electricity availability during peak-demand periods, particularly evenings.

• Transmission constraints have resulted in curtailment of renewable power, highlighting that generation capacity alone is insufficient for a reliable green-energy transition.
• The newly approved Green Energy Corridor Phase-III (GEC-III) seeks to address these bottlenecks by strengthening intra-state transmission and adding large-scale battery storage.

Green Energy Corridor Phase-III

• The Union Cabinet approved GEC-III on 30 September 2026, with a total outlay of ₹1,86,405 crore, targeted for completion by FY 2032–33.
• The scheme aims to facilitate evacuation of up to 135 GW of renewable energy across States/UTs by strengthening the Intra-State Transmission System (InSTS).
• ₹1,36,378 crore is earmarked for intra-state transmission infrastructure, while ₹50,000 crore is allocated for 50 GWh of Battery Energy Storage Systems (BESS).
• The Centre will provide ₹54,082 crore in Central Financial Support, partly helping offset intra-state transmission charges and thereby contain the cost burden on consumers.

Why Transmission Is a Major Bottleneck

• Renewable generation is often concentrated in resource-rich regions, while electricity demand is distributed across cities, industries and rural areas.
• Transmission congestion can prevent electricity generated by solar and wind projects from reaching consumers, resulting in curtailment even when generation capacity is available.
• Strengthening the intra-state “last-mile” transmission network is therefore crucial for converting installed renewable capacity into usable electricity.
• This is particularly important during evening peak demand, when solar generation falls sharply while electricity demand may remain high.

Renewable Energy and the Storage Challenge

• Solar and wind power are variable/intermittent sources: solar generation depends on sunlight, while wind generation varies with wind conditions.
• This creates a mismatch between when electricity is generated and when consumers need it.
• GEC-III's 50 GWh BESS component is designed to improve grid flexibility, address intermittency and congestion, reduce peak-hour curtailment and help meet demand during non-solar hours.
• This is the first GEC phase with a dedicated battery-storage component, marking a shift from focusing mainly on transmission infrastructure towards integrated transmission + storage planning.

Implementation Challenges

Land and Right-of-Way Issues

• Construction of high-voltage transmission lines requires Right of Way (RoW) across private and public land.
• Compensation to landowners and land acquisition disputes can delay projects.
• Environmental and other statutory clearances can also create significant delays, indicating that the challenge is not merely availability of investment but project execution and coordination.

Making Battery Storage Viable

• The success of the 50 GWh storage target depends on creating viable business models and appropriate incentives for battery projects.
• India also needs clear rules regarding ownership, utilisation and payment for stored electricity.
• Dependence on imported critical battery raw materials makes domestic manufacturing, recycling and supply-chain resilience important for long-term storage deployment.

Need for Better Institutional Coordination

• Renewable-energy generation, transmission networks and electricity demand do not necessarily correspond to administrative boundaries.
• Fragmented decision-making among multiple Central and State authorities can delay transmission projects.
• A single-window/unified portal bringing relevant approving authorities together could facilitate real-time monitoring, faster clearances and coordinated decision-making.
• Greater coordination between the Centre, States, transmission utilities, regulators and project developers will therefore be essential.

Lessons from Earlier Phases

• Experience from earlier Green Energy Corridor phases indicates that simply allocating funds does not guarantee timely project completion.
• Land acquisition, RoW compensation, environmental clearances, inter-agency coordination and project execution can become binding constraints.
• GEC-III therefore needs stronger implementation mechanisms alongside financial support.

Relevant Concepts

Green Energy Corridor

• A transmission-infrastructure programme designed to facilitate integration and evacuation of renewable electricity into the power grid.
• Earlier phases focused primarily on strengthening inter-state and intra-state transmission networks in renewable-energy-rich regions.
• GEC-III places particular emphasis on intra-state transmission and integrates BESS into the programme.

Battery Energy Storage System (BESS)

• BESS stores electricity when supply is relatively high and makes it available when required.
• It can help manage intermittency, peak demand, grid congestion, frequency/voltage stability and renewable-power curtailment.
• Storage is therefore an important component of a power system with a rising share of variable renewable energy.

Intra-State Transmission System (InSTS)

• Refers to transmission infrastructure within a State/UT, connecting renewable-generation locations with demand centres and the wider grid.
• GEC-III specifically seeks to strengthen this layer so that renewable power can be effectively evacuated and distributed.

Way Forward

• Transmission must precede or keep pace with renewable-capacity addition to prevent generation assets from becoming stranded or curtailed.
• Planning should integrate renewable generation + transmission + storage + demand rather than treating them as separate sectors.
• Faster land/clearance processes, coordinated approvals, viable storage markets and stronger intra-state networks are essential.
• Successful implementation of GEC-III can help India move from merely adding renewable capacity to reliably delivering renewable electricity to consumers.