India to invest substantially in green energy corridors to support renewable energy expansion: MNRE Secretary

What Happened

• The Secretary of the Ministry of New and Renewable Energy (MNRE) stated that India will make substantial investments in green energy corridors to address curtailment challenges arising from the rapid expansion of renewable energy capacity.
• The MNRE Secretary highlighted that curtailment of renewable energy — the forced reduction of solar and wind output due to grid constraints — is a critical operational problem that must be addressed through enhanced grid infrastructure and improved planning mechanisms.
• Specific solutions cited include deployment of battery energy storage systems (BESS), grid-forming inverters, synchronous condensers, and broader grid modernisation.
• The ministry is coordinating with the Ministry of Power, the Central Electricity Authority (CEA), and the Central Transmission Utility of India (CTUIL) to address curtailment issues.
• India has plans to spend approximately $574 billion by 2030 to develop a super grid using high-voltage DC (HVDC) and high-voltage AC (HVAC) transmission lines to evacuate power from renewable energy-rich zones to demand centres.

Static Topic Bridges

Green Energy Corridors — Programme Design and Phases

The Green Energy Corridor (GEC) programme is a dedicated transmission infrastructure initiative to evacuate renewable energy from generation-rich states to consumption centres, overcoming the fundamental mismatch between where wind and solar resources are concentrated (Rajasthan, Gujarat, Tamil Nadu, Karnataka) and where electricity demand is highest. The programme was conceived following a 2012 study by Power Grid Corporation of India Limited (PGCIL), which identified critical evacuation gaps near renewable energy potential sites. Implementation of GEC began in 2015 under two parallel streams: Inter-State Transmission System (ISTS), implemented by PGCIL for national-level evacuation; and Intra-State Transmission System (InSTS), implemented by State Transmission Utilities (STUs) within RE-rich states.

GEC Phase I (InSTS): - Approved by the Cabinet Committee on Economic Affairs (CCEA) in 2015. - Target: 9,700 circuit km of intra-state transmission lines and 22,600 MVA of sub-stations. - Implemented by STUs of 8 states: Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu. - Total project cost: Rs 10,141.68 crore; funded 40% by central MNRE grant (Rs 4,056.67 crore), 40% by KfW Germany loan (EUR 500 million), 20% by STU equity.

GEC Phase II (InSTS): - Approved by CCEA in January 2022. - Target: 10,750 circuit km of intra-state transmission lines and 27,500 MVA of sub-stations. - Covers 7 states: Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, Uttar Pradesh; designed to evacuate approximately 20 GW of RE power. - Total project cost: Rs 12,031.33 crore; MNRE central financial assistance of Rs 3,970.34 crore (33%); balance via KfW/REC/PFC loans. - Scheduled commissioning: March 2026.

ISTS Phase I: - 3,200 circuit km of inter-state transmission lines and 17,000 MVA of substations commissioned in March 2020, implemented by PGCIL.

Renewable Energy Curtailment — Causes, Scale, and Policy Implications

Renewable energy curtailment occurs when generation from solar or wind plants is forcibly reduced below their technically capable output, typically because the transmission network cannot absorb the surplus or the grid cannot balance frequency. It represents a direct waste of clean energy and imposes financial losses on renewable energy developers while undermining India's clean energy targets. Curtailment has intensified as renewable capacity additions have outpaced transmission infrastructure build-out. According to recent data, India curtailed approximately 31 GW of renewable capacity in Q4 FY2025-26 (January–March 2026). Gujarat witnessed the highest curtailment at 20 GW (57 MU) of solar and 3 GW of wind. Rajasthan saw nearly 11.5 GW curtailed since January 2026, with 8.3 GW in March alone. High-renewable states reported curtailment levels of 10–30% due to transmission unavailability.

Electricity Transmission Infrastructure — Regulatory and Institutional Framework

Electricity transmission in India is a concurrent subject, with the Central Electricity Authority (CEA) and Central Transmission Utility (PGCIL/CTUIL) handling inter-state transmission, and State Transmission Utilities handling intra-state grids. The Electricity Act 2003 governs the sector, establishing CERC (Central Electricity Regulatory Commission) for inter-state tariff regulation and SERCs (State Electricity Regulatory Commissions) for intra-state regulation. The National Electricity Plan (NEP), prepared by CEA, sets out transmission expansion targets. Grid integration of high proportions of variable renewable energy (solar and wind) requires additional flexibility tools: Battery Energy Storage Systems (BESS), pumped hydro storage, grid-forming inverters (which can maintain grid stability without synchronous generators), and synchronous condensers (which provide reactive power and inertia).

Key Facts & Data

• India curtailed ~31 GW of RE capacity in Q4 FY2025-26 (Jan–Mar 2026).
• Rajasthan: 11.5 GW curtailed since January 2026 (8.3 GW in March alone).
• India's planned super-grid investment: ~$574 billion by 2030.
• GEC Phase I (InSTS): Rs 10,141.68 crore; 9,700 circuit km; 8 states; CCEA approved 2015.
• GEC Phase II (InSTS): Rs 12,031.33 crore; 10,750 circuit km; 7 states; CCEA approved January 2022; target commissioning March 2026.
• GEC Phase I (ISTS): 3,200 circuit km; commissioned March 2020 by PGCIL.
• KfW Germany financing for GEC Phase I: EUR 500 million; total KfW commitment across GEC: >EUR 1.4 billion.
• India's 2030 renewable target: 500 GW installed capacity.
• India's peak power demand record: 256 GW (FY2025-26).