Cabinet approves Intra-State Transmission System – Green Energy Corridor Phase-II
Why in news:
- The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Shri Narendra Modi, approved the scheme on Green Energy Corridor (GEC) Phase-II for Intra-State Transmission System (InSTS) for addition of approximately 10,750 circuit kilometres (ckm) of transmission lines and approx. 27,500 Mega Volt-Amperes (MVA) transformation capacity of substations.
About the scheme:
- The scheme will facilitate grid integration and power evacuation of approximately 20 GW of Renewable Energy (RE) power projects in seven States namely, Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh.
- The scheme is targeted to be set up with total estimated cost of Rs. 12,031.33 crore and Central Financial Assistance (CFA) @ 33 percent of the project cost i.e. 3970.34 crore.
- The transmission systems will be created over a period of five year from Financial Year 2021-22 to 2025-26.
- The Central Financial Assistance (CFA) will help in offsetting the Intra-State transmission charges and thus keep the power costs down. Thus, the Government support will ultimately benefit the end users — the citizens of India.
- The scheme will help in achieving the target of 450 GW installed RE capacity by 2030.
- The scheme will also contribute to long term energy security of the country and promote ecologically sustainable growth by reducing carbon footprint. It will generate large direct & indirect employment opportunities for both skilled and unskilled personnel in power and other related sectors.
- This scheme is in addition to GEC-Phase-I which is already under implementation in the States of Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu for grid integration and power evacuation of approx.
- 24 GW of RE power and is expected to be completed by 2022.
- The scheme is for addition of 9700 ckm of transmission lines and 22600 MVA capacity of substations having estimated cost of transmission projects of Rs. 10,141.68 crore with Central Financial Assistance (CFA) of Rs. 4056.67 crore.
About green corridor project :
- Green Energy Corridor is a comprehensive scheme for evacuation & integration of the renewable energy (RE) capacity addition of 32,713 MW during 12th Plan Period.
- The purpose is to evacuate approx.20,000 MW of large scale renewable power and improvement of the grid in the implementing States.
- The government aims to create an ambitious 175 GW of renewable energy capacity by 2022.
- The Green Energy Corridor Project aims at synchronizing electricity produced from renewable sources, such as solar and wind, with conventional power stations in the grid.
- For evacuation of large-scale renewable energy, Intra State Transmission System (InSTS) project was sanctioned by the Ministry in 2015-16. It is being implemented by eight renewable-rich states of Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh, and Madhya Pradesh. The project is being implemented in these states by the respective State Transmission Utilities (STUs).
- The revised target of the project is to install approx. 9700 ckm transmission lines and substations of a total capacity of approx. 22600 MVA to be completed by December 2020. (phase 1)
- The purpose is to evacuate over 20,000 MW of large-scale renewable power and improvement of the grid in the implementing states.
- The total project cost is Rs. 10141 crores. The funding mechanism consists of 40% Government of India Grant (total Rs. 4056.67 crores), 20% state equity and 40% loan from KfW, Germany (500 million EUR).
- The Central grant is disbursed in two instalments to the STUs: a) 70% advance on the award of contract, and b) balance 30% after successful commissioning and three months of performance testing.
Institutional Arrangements & Implementation Strategy
- The project is being implemented by respective State Transmission Utilities (STUs) allocating the work through a competitive bidding process.
- The Ministry monitors the project every month. A Project Appraisal Committee under the chairmanship of concerned Joint Secretary/Scientist ‘G’ with members from CEA & PGCIL monitors the project & recommends on the disbursal of the central grant to the STUs.
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