Green Energy Corridor Phases 3-4: 150 GW Expansion

The grid is now the binding constraint

India’s renewable energy buildout is increasingly being shaped by transmission capacity, not just generation additions. At the CII Annual Business Summit 2026, Ministry of New and Renewable Energy (MNRE) secretary Santosh Kumar Sarangi said India needs China-like super grid planning to reach NITI Aayog’s projection of 1,800 gigawatt (GW) renewable energy capacity by 2050. The message from the government is clear: evacuation infrastructure and grid stability tools must scale in parallel with solar and wind deployment.

This comes as the Centre prepares to expand the Green Energy Corridor (GEC), its flagship transmission programme for integrating renewable energy into the national grid. New phases are being planned even while earlier phases remain under implementation and curtailment remains a live operational issue in some renewable-rich regions.

What MNRE said at the CII Annual Business Summit 2026

Sarangi said India plans to spend about $174 billion till 2030 to create a “super grid”, with high-voltage DC (HVDC) and HVAC lines built to move power from renewable energy-rich zones to load centres. The stress on HVDC reflects the need for high-capacity, long-distance transmission as renewable generation clusters expand beyond local demand.

He also flagged renewable energy (RE) curtailments as a problem the government is working to reduce. MNRE is coordinating with the Ministry of Power, the Central Electricity Authority (CEA), and Central Transmission Utility of India Limited to address curtailment-related issues. In parallel, MNRE is proposing a substantially bigger outlay for the green energy corridor scheme so states can upgrade equipment, add storage systems, and strengthen intra-state evacuation infrastructure.

Sarangi also highlighted the role of battery energy storage systems (BESS), grid-forming inverters, synchronous condensers, and broader grid modernisation in improving RE integration. While decentralisation is already underway through schemes such as PM Kusum and PM Surya Ghar in states like Rajasthan and Gujarat, he said the government plans incentive mechanisms for agri-photovoltaic (agrivoltaic) and floating solar projects to further reduce concentration risk and land constraints.

Green Energy Corridor Phase 3 and 4: the next scale-up

The government is preparing to significantly scale up its renewable power evacuation network under GEC Phases 3 and 4. A senior government official told Down To Earth that the next corridor is being designed at a much larger scale, with planning for “around 150 GW of renewable energy for evacuation”. The official described the expansion as “almost eight to ten times larger than both earlier corridors put together”.

Implementation is expected to be staged due to the size of the buildout. According to the official, Phase 1 covers 10 states and Phase 2 covers seven to eight states. Phases 3 and 4 are intended to cover the rest of the country, expanding the evacuation backbone across India.

From a system architecture standpoint, the transmission backbone for the expansion is expected to be developed under the inter-state transmission system (ISTS). The stated objective is to support states in evacuating renewable power through a national corridor, rather than leaving integration entirely to state-level infrastructure.

Earlier phases: what has been commissioned and what is underway

GEC has been positioned as a key pillar supporting India’s 500 GW non-fossil power capacity goal by 2030. Phase 1 aimed to evacuate significant renewable energy, with around 20 GW capacity commissioned. Phase 2 targets an additional 20 GW of integration, adding new transmission lines of 10,750 circuit kilometres (ckm) and substations of 27,500 MVA, with a focus on key states for grid stability.

Separately, MNRE’s Intra-State Transmission System (InSTS) GEC scheme was approved in 2015 with a target of 9,700 ckm intra-state lines and 22,600 MVA substations across eight renewable-rich states. It is being implemented by state transmission utilities, and is intended to evacuate about 24 GW, of which about 20 GW has been commissioned and connected through the projects.

As of 31 March 2025, 9,161 ckm of transmission lines had been constructed and 21,925 MVA substations had been charged under the InSTS scheme. Rajasthan, Madhya Pradesh, Karnataka and Tamil Nadu completed all projects, while Andhra Pradesh, Himachal Pradesh and Gujarat were granted an extension up to June 2025.

Budget and funding signals: what is known so far

A core issue for GEC Phases 3 and 4 is funding scale. The official cited above did not provide a specific figure, but said expenditure could be 10 times higher than earlier phases. A Mint report dated March 19, 2025 said GEC-III was proposed in the Union Budget for FY26, with an overall cost estimated at Rs 56,000 crore and the Centre covering 40% of it.

Parallel government messaging also points to a larger capex cycle across generation, storage and networks. Minister for New and Renewable Energy Pralhad Joshi said India achieved 50% of installed power capacity from non-fossil fuel sources in 2025, and that the country needs around $100 billion in investments by 2030 to accelerate the energy transition. The ministry said this investment could be deployed across renewable generation, storage, renewable hydrogen, grid strengthening and manufacturing of renewable energy components.

Why curtailment and grid stability are now central

Curtailment has become a practical indicator of where transmission and balancing are lagging generation. MNRE’s approach, as outlined by Sarangi, is to combine infrastructure creation with grid stability technologies. Storage additions are explicitly part of the integration plan, alongside equipment such as grid-forming inverters and synchronous condensers that help maintain frequency and voltage stability as variable renewable penetration rises.

Policy and market design are also moving to support utilisation of transmission corridors. MNRE pointed to recent amendments to the CERC General Network Access (GNA) Regulations, 2025, which are expected to enhance transmission efficiency through dynamic corridor sharing between solar, wind and storage projects. The stated intent is to reduce congestion and improve project implementation speed across renewable-rich states.

Ladakh as a test case for high-capacity corridors

The transmission strategy is also visible in dedicated evacuation planning for large renewable zones. MNRE plans to set up 13,000 MW renewable energy along with a 12,000 MWh BESS in Ladakh. An ISTS transmission system is planned for evacuation and despatch from the Union Territory of Ladakh to other parts of India.

POWERGRID is the implementing agency for this transmission project. The project cost is Rs 20,773.70 crore (excluding IDC of Rs 2,168.69 crore), and the central grant is 40% of project cost at Rs 8,309.48 crore. It is anticipated to be completed by FY 2029-30, and includes 1,268 ckm transmission lines and two HVDC terminals of 5,000 MW capacity each.

Key facts snapshot

What changes for investors, utilities, and states

For investors tracking India’s listed power and grid ecosystem, the emphasis is shifting from pure capacity addition to the enabling infrastructure around it. Transmission buildouts like GEC Phases 3 and 4 are framed as essential for credible execution of the 500 GW non-fossil target by 2030, especially as renewable development spreads beyond traditional solar and wind hubs.

For state governments, the Centre has underlined that execution depends heavily on state action on land allocation, transmission facilitation and signing power purchase agreements (PPAs). Sarangi also said MNRE is discussing with the Ministry of Finance a new renewable energy scheme focused on floating solar and agrivoltaic projects, prioritised because they can be deployed without competing for large land parcels.

Conclusion

India’s renewable buildout is now closely tied to the speed at which transmission corridors, grid stability equipment and storage can be deployed. With GEC Phases 3 and 4 being planned for around 150 GW of evacuation capacity and a broader push for a super grid, the next phase of the energy transition is increasingly about integration and reliability. The next concrete signals to watch are budgetary allocations for the new corridor phases and implementation timelines as the Centre and states expand both ISTS and intra-state evacuation capacity.