By - King Stubb & Kasiva on October 18, 2023
As the planet struggles with the critical challenge of climate change, the shift towards renewable energy sources has become an absolute necessity rather than merely a choice. In India, electricity generation involves two primary methods: renewable and non-renewable. The former involves electricity generation from wind, solar, hydro energy, and geothermal sources, while the latter draws electricity from coal.
The Green Energy Corridor Scheme for the development of intra-state transmission systems for renewable energy (RE) projects. In Phase I, the scheme provides financial assistance (CFA) equivalent to 40% of the Detailed Project Report (DPR) cost or the awarded cost, whichever is lower. In Phase II, this assistance is reduced to 33% of the DPR cost or the awarded cost, again, whichever is lower. These provisions aim to support the growth of renewable energy projects and enhance the country's green energy infrastructure.
The Green Energy Corridors (GECs) initiative was launched by the Government of India[1] to generate sustainable, clean, and efficient energy. At its core, GECs are grid-connected networks, specifically built to connect all renewable energy sources (RES) and transmit their power from resource-rich areas to areas with high demands.
India’s commitment to expanding its renewable energy capacity aligns with its pledge to the Paris Agreement and the global mission to combat climate change.
The Green Corridor project is jointly implemented by two agencies. Intra-state transmission responsibilities are managed by individual state transmission utilities, while inter-state transmission falls under the jurisdiction of the Power Grid Corporation of India Limited (PGCIL).
Two phases of implementation were planned for this project.
In 2015-16, phase I (also known as Intra State Transmission System (InSTS) was launched in 8 Indian states- Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Madhya Pradesh, Tamil Nadu, Rajasthan, and Himachal Pradesh.
The key objective of this project is to maximise India’s renewable energy potential and to build the infrastructure required for the extraction of excess renewable energy generated in these states and integrate it into India’s national grid system. The national grid will distribute this extra electricity to states with energy shortages, such as Bihar, Uttar Pradesh, Jharkhand, etc.
At the launch of the project, the primary goal was to lay around 9700 circuit kilometres of transmission lines and build substations with a capacity of about 22600 MVA by December 2020. The budget for the project was ₹10041 crores, with the Central Government providing 40% of the funding, 20% being state equity, and the remaining 40% being financed through a 500 million Euros loan from Germany.[2]
Phase 1 was an incredible success since India was able to complete the intended transmission of excess renewable energy from energy-rich states to energy-deficient areas.
The government launched Phase 2 in January 2022 to build 27.5 GVA electricity substations. In addition, the government also plans to build over 10,500 Kilometres of transmission lines across the nation including all the states that participated in phase 1. The total energy extraction goal for this phase has been set at 24 GW.
The whole budget was set at Rs. 12,000 crores, and the target for completion is the financial year 2026-27, with 33% of the total cost to be covered by the Central government.[3]
The GEC Scheme for the development of intra-state transmission systems for renewable energy (RE) projects:
In Phase I, the scheme provides financial assistance (CFA) equivalent to 40% of the Detailed Project Report (DPR) cost or the awarded cost, whichever is lower.
In Phase II, this assistance is reduced to 33% of the DPR cost or the awarded cost, again, whichever is lower. These provisions aim to support the growth of renewable energy projects and enhance the country's green energy infrastructure.[4]
GECs are certain to bring significant benefits to India’s electricity generation and distribution landscape. The factors that show their significance are:
One of the primary challenges in developing GECs is the coordination required among different states. Energy transmission often crosses state boundaries, necessitating cooperation to build and maintain these corridors. Inconsistent policies and regulations between states can hinder progress and increase costs.
Efficient energy transmission requires a harmonized approach among states, utilities, and regulatory bodies. By coordinating efforts, states can optimize infrastructure development, reduce transmission losses, and enhance the reliability of the grid. Successful inter-state coordination can serve as a blueprint for others to follow.
The Energiewende plan in Germany, for instance, involves a cooperative effort between many states to make the transition to renewable energy, positioning Germany as a leader in renewable energy.
The Electricity Act of 2003 lays down the framework for generating, distributing, transmitting, and utilizing electricity in India, with specific provisions for renewable energy sources. Additionally, it empowers the Appropriate Commission to set pricing structures, offer incentives, and provide guidance to promote the expansion of the renewable energy sector.
The development and growth of renewable energy in India are closely supervised by the Ministry of New and Renewable Energy (MNRE), which acts as a central point for implementing projects, framing policies, and encouraging industrial innovation. The MNRE's initiatives have been instrumental in driving India towards its renewable energy targets.[5]
National Green Corridor Programme (NGCP): The Indian government launched the NGCP in 2013 with an investment of Rs. 43,000 Crore, to facilitate the smooth integration of renewable energy into the national grid network. This programme aimed to build a reliable transmission system for renewable energy.
The following projects have been started to effectively achieve the objectives of GECs:
Developing Green Energy Corridors requires substantial financial resources, which can be obtained through various channels such as private equity, government grants, and international organizations like the World Bank.
These partnerships involve governments collaborating with private entities to split the financial burden and pool the skills needed for large-scale infrastructure development.
GEC projects often traverse rural and remote areas. Engaging with local communities is essential to address their concerns, ensure social acceptance, and share the benefits of renewable energy development.
Public awareness campaigns can educate communities about the benefits of Green Energy Corridors. Open dialogues and transparent communication foster trust and support for renewable energy projects.
Collaboration with non-governmental organizations (NGOs) and advocacy groups can help align Green Energy Corridor projects with broader sustainability and conservation goals. Expertise in community engagement and environmental protection can also be provided by NGOs.
To harness their full potential, policymakers and stakeholders should:
As the world strives to combat climate change and secure a brighter future, Green Energy Corridors stand as a testament to human innovation and determination.
GECs focus on making the seamless flow of renewable energy from resource-rich areas to areas with high energy demand, thereby reducing the reliance on fossil fuels and greenhouse gas emissions.
The Electricity Act, 2003, provides the framework for developing, transmitting, and distributing renewable energy in India. The Ministry of New and Renewable Energy (MNRE) looks after the growth of the sector.
This program was introduced in 2013 and involves investment in the transmission infrastructure required for the smooth integration of renewable energy into the national grid network.
[1] https://powermin.gov.in/en/content/green-energy-corridor
[2] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1777299.
[3] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1788011.
[4] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1947140
[5] https://mnre.gov.in/green-energy-corridor.
[6] https://www.investindia.gov.in/team-india-blogs/green-grids-initiative-one-sun-one-world-one-grid.
[7] https://hareda.gov.in/intoduction-jnnsm/.
[8] https://testbook.com/ias-preparation/international-solar-alliance.
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