Current Affairs 2022: Green Energy Corridor of India

By Shubham Singh

Green Energy Corridor Initiative in India is one of the most ambitious projects envisaged by the Government of India. it will be proved as a milestone in the power transmission system in India. Read further for details.

The green energy corridor is one of the most ambitious projects, which are being under construction, of India. Recently, the government and special cabinet committee of economic affairs passed a proposal focusing on the launch and development of phase two of the green energy corridor.

The project will finance investments in the power transmission system in India, including one part of the Government of India's Green Energy Corridor initiative to facilitate the transfer of power from renewable energy (RE) rich areas to other parts of the country, consisting of 765 kilovolt (kV) and 400 kV high-voltage transmission lines and an associated 765/400kV substation and related equipment, and

(ii) four high-voltage direct current (HVDC) terminals (two at 800 kV and two at 320 kV) as part of improved interregional connectivity between India's western and southern regional power grids.

What is the Green Energy Corridor?

This is a project for the offloading of renewable energy from generation points to load centres through the creation of intra- and inter-state transmission infrastructure. The project is being implemented in states with a lot of renewable energy to meet the projected expansion of renewable energy. The renewable energy-rich states in India are (Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Rajasthan, Madhya Pradesh and Tamil Nadu).

The intra-state transmission component of the project will be implemented by the respective states, while the Power Grid Corporation of India (PGCIL) will implement the inter-state transmission component. PGCIL has received loans from the Asian Development Bank for the implementation of the project. As part of the cooperation between the Indian and German governments, KfW Germany is providing a €1 billion soft loan for financing green energy corridors for both intra- and inter-state transmission projects.

The revised target of the project is to install about 9700km of transmission lines and substations with a total capacity of about 22600 MVA, to be completed by December 2020. The aim is to transmit more than 20,000 MW of electricity from renewable energy sources on a large scale and to improve the grid in the implementing states.

The total cost of the project is Rs. 10141 crores. The financing mechanism consists of a 40% Government of India grant (total Rs. 4056.67 crores), 20% government equity and 40% loan from KfW, Germany (Rs. 500 crores).

The government and PGCIL aim to complete the construction of the green energy corridor into two phases. The first phase is almost completed and for the second phase, funding has been approved by the cabinet and the development works are ready to hit the ground.

Transmission development of Green Energy corridor under the phase 1

Currently, PGCIL has developed three networks of the Renewable Energy Management Center (REMC) across the country. They are as follows

REMC-South Region

The networks are designed to focus on the states like Tamil Nadu, Andhra Pradesh, Karnataka SLDCs (State Load Dispatch Center) & SRLDC (Southern regional load dispatch centre)

REMC- West Region

The states are Gujarat, Maharashtra, Madhya Pradesh SLDCs and WRLDC(Western Regional Load Dispatch Center)

REMC-Northern Region

Here only one state is being put in this network Rajasthan SLDC, NRLDC and NLDC
The states' intra-state transmission programmes are at various stages of the bidding and award process and are expected to be implemented in a phased manner by 2018-19. The inter-state transmission lines assigned to the power grid for implementation of the green grid initiative have been completed. In addition, the 11 REMCs were commissioned by the power grid on February 20. In addition, a new REMC in Telangana and an EMC in Andaman and Nicobar Islands are under implementation and are expected to be completed by FY 2021-22.

Currently, the majority of the projects in this phase are completed and working under grid integration of about 24GW Renewable energy.

Transmission development of Green Energy corridor under the phase 2

In phase 2, the main focus of the government is to install many high efficient solar plants across the country. Some development works have already started and some are ready to hit the ground. To develop a plan for grid integration of solar farms in twenty-one states, a comprehensive transmission plan for evacuation of about 20,000 MW capacity through the intra- state and inter-state system was developed.

The Ministry of Commerce and Technology has appointed POWER GRID to undertake the transmission work for Anantapur (1500 MW), Pavagada (2000 MW), Rewa (750 MW), Bhadla- III (500 MW), Bhadla- IV (250 MW), Essel (750 MW), Banaskantha (700MW) & Fatehgarh (1000 MW) solar parks. The transmission system for all 7 solar parks allocated to POWERGRID has been commissioned.

Phase 2 is dedicated to the states like Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh, and Bihar and it is set to be completed in 2025-26.

The total estimated cost of the project is Rs 12,031 million and the Central Finance Assistance (CFA) will contribute 33% of the project cost.
The CFA will help offset domestic transmission charges, keeping electricity costs low.

Significance of the green energy corridor initiative

It will contribute to India's long-term energy security and promote environmentally sustainable growth by reducing its carbon footprint.

It will help create numerous direct and indirect employment opportunities for skilled and unskilled labour. It will also help to achieve India's carbon-neutral declaration.

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About the Author

He is an enthusiastic traveller, a technical student by profession and a content writer by passion. His other interests are playing cricket, reading articles about defense and foreign affairs, long driving and travelling off course.