For new energy, remove old bottlenecks

The new corridor could be the backbone of the next phase of India’s green energy transition. It will do well to overcome the bottlenecks of the past.

3 min readOct 2, 2026 06:00 AM IST First published on: Oct 2, 2026 at 06:00 AM IST

With more than 300 GW of installed capacity, India ranks third globally in renewable-energy (RE) deployment. But this impressive growth has not always translated into green energy being available when demand is highest, particularly during the evening peak. As this newspaper reported on July 31, transmission constraints and the need to maintain grid security forced operators to curtail a significant amount of solar power-generated electricity during April to June. The Centre’s Green Energy Corridor Phase-III scheme tries to address this constraint by strengthening systems in states to evacuate up to 135 GW of renewable energy. The project will also add 50 GWh of battery energy storage.

Renewables, especially solar and wind power, have transformed the country’s energy basket, but their variability places new demands on transmission planning and storage. The new scheme is expected to address intermittency during peak hours and meet demand when the Sun is not shining. The emphasis on intra-state networks is particularly significant. Renewable projects are often concentrated in specific regions while demand is spread across cities, industries and rural areas within states. Strengthening the network’s last leg is crucial to ensuring that green power actually reaches consumers. The scheme has earmarked Rs 1,36,378 crore for transmission infrastructure. Its implementation will require learning from past experiences, which suggest that challenges are not restricted to drawing investment. A report of the Parliamentary Standing Committee on Energy tabled in Parliament in December last year, for instance, pointed out that issues related to right-of-way compensation — payment to landowners when high-voltage power transmission lines pass near their property — land acquisition and delays in environmental clearances are major hurdles in laying transmission lines.

The other major challenge will be to ensure that the 50 GWh storage component becomes a functioning part of the grid rather than a procurement target. Battery projects need viable business models and incentives — especially because the sector relies on overseas suppliers for critical raw materials — recycling arrangements and clear rules on who can use and pay for storage. The Centre and states will have to work together on planning and implementation. Renewable resources, transmission corridors and electricity demand do not follow administrative boundaries, and — as the parliamentary committee pointed out — fragmented decision-making often delays projects. Going forward, the government needs to give serious thought to the panel’s proposal for a portal that brings all approving authorities together for real-time monitoring and faster decision-making. The new corridor could be the backbone of the next phase of India’s green energy transition. It will do well to overcome the bottlenecks of the past.