Second phase of Green Energy Corridor worth INR 12,301 approved

33% of the project cost will be met as central financial assistance

January 7, 2022

The transmission systems will be created between FY22 and FY26

The second phase will impact renewable energy projects in Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, and Uttar Pradesh

10,750 ckm of transmission lines and 27,500 MVA of substation capacity will be installed to evacuate power worth 20 GW

Although the size of the second phase is greater than the first phase, it will receive lesser financial assistance from the government

To achieve the target of 450 GW installed renewable energy capacity by 2030, the Cabinet Committee on Economic Affairs (CCEA) has approved the second phase of the green energy corridor with an outlay of INR 12,031 crore. About  33% of the project cost or INR 3,970.3 crore will be met as central financial assistance. The transmission systems will be created between FY22 and FY26, and the central financial assistance is expected to lower the transmission charges, thus reducing power costs.

Approximately 10,750 circuit kilometres (ckm) of transmission lines and 27,500 mega volt-amperes (MVA) of sub-station capacity will be installed to enable power evacuation of 20 gigawatts (GW) of renewable energy projects in Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh in this phase.

Under the first phase of the green energy corridor scheme, 9,700 km of transmission lines and substations are being constructed at an estimated cost of INR 10,141 crore, with the government providing INR 4,056 crore as assistance. Most projects in the first phase were awarded through tariff-based competitive bidding. The initial deadline for the first phase was December 2020, which was subsequently extended till June 2022. Although the size of the second phase of the scheme is greater than the first phase, it will receive a lower amount of financial assistance from the government.

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