Cabinet approves Intra-State Transmission System – Green Energy Corridor Phase-II

What is the News?

The Cabinet Committee on Economic Affairs has approved the scheme on Green Energy Corridor (GEC) Phase-II for Intra-State Transmission System (InSTS).

What is the Green Energy Corridor Project for Intra-State Transmission System (InSTS)?

The Green Energy Corridor(GEC) Project aims at synchronizing electricity produced from renewable sources such as solar and wind with conventional power stations in the grid.

The GEC-Intra State Transmission System(InSTS) project was sanctioned in 2015-16, for evacuation and integration of the renewable energy capacity through setting up of transmission lines and increasing transformation capacity of substations.

Phase I of the Project

It is being implemented by eight renewable-rich states of Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh, and Madhya Pradesh. 

Under this phase, the target is to install 9700 circuit km of transmission lines and  22,600 MegaVolt-Amperes(MVA) transformation capacity of substations by 2022.

This will help in facilitating grid integration and power evacuation of approximately 24 GW of Renewable Energy(RE). ​​The funding mechanism consists of a 40% Government of India Grant, 20% state equity and a 40% loan from KfW Bank, Germany.

Read more: [Yojana October Summary] Energy Security: Nuclear Power – Explained, pointwise
Phase II of the Project

It is being implemented in seven States namely, Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh.

Under this phase, the target is to install  10,750 circuit km of transmission lines and  27,500 MegaVolt-Amperes(MVA) transformation capacity of substations by 2025-26.

This will help in facilitating grid integration and power evacuation of approximately 20GW of Renewable Energy(RE). The Centre will provide assistance at 33% of the cost of the project.

Read more: [Yojana December Summary] Self-reliance in Energy Sector – Explained, pointwise
What is the significance of this project? 

Firstly, it will help to achieve the target of 450 GW installed renewable energy capacity by 2030. 

Secondly, it will contribute to the long-term energy security of the country and promote ecologically sustainable growth by reducing carbon footprint.

Thirdly, the project will generate direct and indirect employment.

Read more: Green Energy Initiatives in Budget 2021- Explained

Source: This post is based on the article Cabinet approves Intra-State Transmission System – Green Energy Corridor Phase-II published in PIB on 6th Jan 2022.

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