17th March, 2018

Green Energy Corridor


  • Recognizing the need for strengthening the transmission infrastructure, the Government of India in 2013 initiated the Green Energy Corridor project worth Rs. 38,000 Crore to facilitate the flow and integration of renewable energy into the national grid network.
  • The project will help in evacuation of power from renewable energy projects to the load centres by creating inter- and intra-state transmission infrastructure.
  • To evacuate power from the renewable capacity addition in resource rich states (Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Rajasthan, Madhya Pradesh and Tamil Nadu), the project is strengthening both the inter- and intra-state transmission systems, and setting up Renewable Energy Management Centres (REMCs) and the control infrastructure.
  • By increasing the share of renewable energy (RE) generation, the project will significantly help India in achieving its target of having 175 GW of installed RE capacities by 2022.

Project Details

  • For its implementation, the project has been split into inter- and intra-state levels. The Power Grid Corporation of India Limited (PGCIL) is developing the inter-state transmission corridor whereas the State Transmission Utilities are responsible for setting up and strengthening the intra-state transmission networks.
  • The intrastate network will feed the renewable energy to the respective state grids. The high capacity transmission corridors of the interstate network will connect major renewable energy pockets with the national grid.
  • PGCIL is already implementing evacuation for inter-state transmission scheme from 6 solar parks with a total capacity of 5750 MW viz. [Ananthapuram (1500 MW), Pavagada (2000 MW), Rewa (750 MW), Bhadla-III (500 MW), Bhadla-IV (250 MW), Essel Saurya (750 MW). Besides, Banaskantha Solar Park (700 MW) and MP solar park will soon begin operation.
  • For intra-state transmission projects, Tamil Nadu, Rajasthan, Himachal Pradesh, Andhra Pradesh, Gujarat and Madhya Pradesh have signed the loan agreement with KfW bank of Germany for financial aid of Euro 76 million, Euro 49 million, Euro 57 million, Euro 68 million, Euro 114 million and Euro 124 Million respectively.
  • Germany has agreed to provide technical and financial assistance to India under the ‘Joint Declaration of Intent’ signed by the two nations in 2013. In this context, KfW Development Bank of Germany is providing concessional loans of up to 1 billion euros for strengthening the transmission infrastructure and evacuating renewable energy from wind and solar projects. GiZ Gmbh is providing technical assistance for RE integration in the national grid. For further details, please refer to https://www.giz.de/en/worldwide/15767.html.
  • PGCIL has also sought loan assistance from the Asian Development Bank (ADB) for implementing the inter-state transmission projects under Green Energy Corridor-PART D. The project seeks to finance high-voltage transmission lines to upgrade existing transmission system and facilitate power transfer from states having rich renewable resources like Rajasthan to the high demand centers. For details please refer to: project-document.


  • The green energy corridor will ensure optimal utilization of renewable energy sources through improved grid management, congestion management and grid discipline.
  • It will also help in building the capacity of grid operators at the central level and large scale RE grid integration in selected states.
  • Currently, absorbing renewable electricity into the grid is difficult due to varying voltage and supply. The green energy corridor will help in addressing these issues.
  • The project will result in improved and more reliable transmission system capacity, expanded access to electricity, increased private investment in renewable energy and enhanced energy security in India. Moreover, it is expected to reduce India’s dependence on expensive imported fossil fuels.
  • Under the project, REMCs are being established for predicting renewable power generation and demand. The REMC centres will be interlinked with load dispatch centres (LDCs) to gather real-time information, as well as monitor and control capacity addition.
  • The project will help in solving the current shortage of transmission capacity due to which many RE plants have to curtail their power generation at times due to transmission bottlenecks.
  • Increasing the generation capacity of renewable energy will indirectly help in lowering the rising emissions of greenhouse gases in India.
  • The project will also boost the inter-state sale of renewable energy, and because of waiver of inter-state transmission system charges, renewable energy costs will come down to help states fulfill their renewable purchase obligations and meet energy demands.

Relevant Link

The modalities for the project was envisaged by the Power Grid Corporation of India Limited (PGCIL) in its innovative report titled ‘Green Energy Corridors’. Volume 1 and 2 of the Report can be found in the following files:

Contact Information 

Ministry of New and Renewable Energy,
Block 14, CGO Complex,
Lodhi Road,
New Delhi- 110003

Contact Person

Girish Kumar (Scientist-E/Director),
24365619 / 25623948,
KfW Office New Delhi 24,
Paschimi Marg, Vasant Vihar
New Delhi 11057