Cabinet approves Rs 1.86 lakh crore electricity grid upgrade scheme

The Union Cabinet has approved a significant Rs 1.86 lakh crore scheme for upgrading the electricity grid. This initiative aims to evacuate 135 GW of renewable energy and establish 50 GWh of battery energy storage. New transmission lines will be awarded through Tariff-Based Competitive Bidding, ensuring efficient project delivery. Additionally, renewable energy developers will receive support for battery energy storage projects.

The Union Cabinet approved a Rs 1.86 lakh crore scheme electricity grid upgradation programme Wednesday. This aims to evacuate 135 GW renewable energy and deploy 50 GWh battery energy storage. Announcing the PM DHARA (Developing Harmonized and Accelerated Renewable energy Access), Union Information Broadcasting Minister Ashwini Vaishnaw said new (greenfield) lines will be awarded through Tariff-Based Competitive Bidding, with transmission service providers building, owning, operating and maintaining the assets.

He emphasised that managing the high variations in renewable energy, like solar and wind, is a "major challenge," stating, "The grid has to be designed to take the load of that variation."

An official statement said brownfield upgradation and network strengthening works will be executed under Cost Plus Basis (CPB). The State Transmission Utilities will be the overall implementing agency, and Transmission Service Providers (TSPs) will participate under TBCB on a Build-Own-Operate-Maintain (BOOM) model.

"The scheme will help in achieving the target of 900 GW installed Non-Fossil capacity by 2035," the statement added.

An official presentation said

Green Energy Corridor Phase-III scheme which aims for states to set up intra-state power transmission by fiscal 2032-33. Under the program, the renewable energy developers will also get support for setting up battery energy storage projects of 50 GWh capacity, for which the scheme has kept Rs 50,000 crore.