Budget 2024: Finance minister allots ₹600 crore to Green Energy Corridor, up from ₹434 crore – EQ
In Short : In Budget 2024, the finance minister has allotted ₹600 crore to the Green Energy Corridor, an increase from the previous ₹434 crore. This boost in funding aims to enhance the infrastructure for renewable energy transmission and support the country’s transition to sustainable energy sources.
In Detail : Budget 2024: The Green Energy Corridor is an ambitious project designed to improve the transmission infrastructure for renewable energy across the country.
The Union Budget 2024 gave a fillip to the Green Energy Corridor, an ambitious project designed to improve the transmission infrastructure for renewable energy across the country. Finance Minister Nirmala Sitharaman announced an allocation of ₹600 crore for FY25, up from the revised estimate of ₹434 crore for FY23-24.
What is the Green Energy Corridor?
The Green Energy Corridor (GEC) is a project aimed at integrating renewable energy sources into the power grid. In 2012, a study found that transmission infrastructure near potential renewable energy sites was lacking, so a dedicated transmission system was planned. The GEC project was approved in 2015 and consists of two parts — Inter-State Transmission System (ISTS) and Intra-State Transmission System (InSTS).
Parts of the GEC
Inter-State Transmission System (ISTS)
The ISTS GEC project was commissioned in March 2020 at the cost of ₹11,369 crore. It has 3200 ckm (circuit km) of inter-state transmission lines and 17,000 MVA substations. The project was implemented by Power Grid Corporation of India Limited (PGCIL) and funded by PGCIL, KfW and ADB. The project aims to evacuate approximately 6 GW of renewable energy power.
Intra-State Transmission System (InSTS)
The InSTS GEC scheme is currently under implementation by state transmission utilities (STUs) in eight renewable energy-rich states. The project cost is ₹10,141.68 crore, with funding from MNRE, KfW Germany, and STUs. The project aims to evacuate approximately 24 GW of renewable energy power. As of March 2024, 9110 ckm of transmission lines and 21,303 MVA substations have been constructed.
Since its inception, the Green Energy Corridor has focused on eight renewable-rich states – Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh and Madhya Pradesh.
Key objectives
- To integrate renewable energy sources, such as solar and wind power, into the power grid.
- To evacuate approximately 24 GW of renewable energy power from eight renewable energy-rich states.
- To strengthen the transmission infrastructure to accommodate large-scale renewable energy generation.
- To improve grid stability and reliability by setting up renewable energy management centres (REMCs) and control infrastructure.
- To reduce transmission losses and enhance overall efficiency.
- To promote renewable energy and reduce dependency on fossil fuels.
- To create a national grid that can transmit power from renewable energy-rich states to other parts of the country.
Allocations
In the budget for FY22-23, the Green Energy Corridor was allocated ₹250 crore. The next year, (FY23-24), saw a substantial increase to ₹500 crore, which was later revised to ₹434 crore.
