**Executive Summary**
The Ministry of Power is implementing a comprehensive strategy to strengthen transmission infrastructure and energy storage to integrate 500 GW of renewable energy (RE) by 2030. The document details grid expansion targets up to 2032, the deployment of smart grid technologies, and various financial incentives, such as ISTS charge waivers valid until June 2028. Key measures include the implementation of the Green Energy Corridor and budgetary support for Hydro Pumped Storage Projects to ensure energy security and round-the-clock power delivery.
**Key Points / Main Content**
**Transmission Infrastructure and Grid Operation**
* **Capacity Expansion:** Development of Inter-State (ISTS) and Intra-State (InSTS) systems to evacuate over 500 GW of RE by 2030; transmission networks are planned to reach 6.48 lakh circuit km by 2032.
* **Green Energy Corridor (GEC):** Implementation of GEC-I and GEC-II across ten states (including Rajasthan, Karnataka, and Tamil Nadu) to evacuate 44 GW of RE.
* **Regulatory Framework:** The CERC (Third Amendment) Regulations 2025 introduced solar-hour and non-solar-hour connectivity to optimize infrastructure use.
* **Technical Standards:** CEA regulations now prescribe minimum technical requirements for RE plants to ensure grid reliability and safety.
* **Monitoring and Forecasting:** Establishment of 13 Renewable Energy Management Centres (REMCs) and utilization of NCMRWF and ISRO meteorological inputs for real-time generation forecasting.
**Smart Grid Technology Deployment**
* **Voltage Stability:** Planning and deployment of advanced support technologies, including STATCOMS, Synchronous Condensers (SynCONs), and Flexible AC Transmission Systems (FACTS).
* **Frequency Regulation:** Implementation of Automatic Generation Control (AGC) and Ancillary Services (SRAS/TRAS) for grid balancing.
* **Distribution Automation:** Sanctioning of Supervisory Control and Data Acquisition (SCADA) works for distribution systems covering 455 towns under the Revamped Distribution Sector Scheme (RDSS).
**Energy Storage Systems (ESS) Development**
* **Financial Incentives:** 100% waiver of ISTS charges for co-located BESS projects commissioned by June 2028 and Hydro Pumped Storage Plants (PSPs) awarded by June 2028.
* **Viability Gap Funding (VGF):** Schemes approved for the development of approximately 43.8 GWh of Battery Energy Storage Systems (BESS).
* **Manufacturing Support:** A Production-Linked Incentive (PLI) scheme with an ₹18,100 crore outlay for 50 GWh of Advanced Chemistry Cell manufacturing, with 10 GWh earmarked for grid-scale storage.
* **Hydro PSP Streamlining:** Budgetary support for enabling infrastructure (roads, transmission lines) and exemption from CEA concurrence for off-stream closed-loop pumped storage schemes.
**Impact Analysis**
**Renewable Energy Power Producers**
**Impact**
Producers benefit from expanded evacuation infrastructure, dedicated HVDC links, and new "solar-hour" connectivity regulations that allow for optimal infrastructure use.
**Action Required**
Must comply with CEA technical standards for grid connectivity and align project commissioning with ISTS waiver deadlines (June 2028).
**State Power Utilities and DISCOMs**
**Impact**
Ten specific states are receiving GEC infrastructure; 455 towns will see distribution improvements via SCADA under RDSS.
**Action Required**
Implement sanctioned SCADA works and coordinate with REMCs for better demand and generation forecasting.
**Energy Storage and Battery Manufacturers**
**Impact**
Significant growth opportunities through the ₹18,100 crore PLI scheme and the 43.8 GWh VGF scheme.
**Action Required**
Participate in Tariff Based Competitive Bidding (TBCB) for storage capacity and establish manufacturing facilities under PLI guidelines.
**Thermal Power Generators**
**Impact**
Mandated to provide flexibilization of generation to balance the variability inherent in renewable energy sources.
**Action Required**
Modify operational procedures to meet mandatory flexibilization requirements.
Key Entities Referenced
National Electricity Plan (Volume-II Transmission): The strategic roadmap planning the expansion of India's transmission network to 6.48 lakh circuit km by 2032 to facilitate renewable energy integration.
Green Energy Corridor (GEC): An Intra-State Transmission projects scheme implemented in ten states across two phases to facilitate the evacuation of 44 GW of renewable energy.
Electricity Act, 2003: The primary legislation governing the power sector, specifically referenced for defining Energy Storage Systems (ESS) as an integral part of the power system.
Connectivity and General Network Access to the Inter-State Transmission System (Third Amendment) Regulations, 2025: Regulations that introduced solar and non-solar hour connectivity to optimize transmission infrastructure and promote hybrid renewable projects.
Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell: A ₹18,100 crore manufacturing initiative to establish 50 GWh of battery capacity, with 10 GWh specifically earmarked for grid-scale energy storage.
Ministry of Power
STRENGTHENING TRANSMISSION
INFRASTRUCTURE FOR INTEGRATION OF
RENEWABLE ENERGY
Posted On: 23 MAR 2026 4:52PM by PIB Delhi
The Government has adopted planning and implementation approach that prioritises grid readiness,
transmission expansion and energy storage deployment as integral components of development of
Renewable Energy (RE) sources in the country. The steps required for integration of RE into the grid,
while expanding the renewable capacity, have been undertaken to achieve the goal of energy security
along with energy transition. To support this, several measures have been initiated, including
strengthening the transmission infrastructure and grid operation, deploying smart grid technologies, and
expanding energy storage systems to address supply intermittency and enable round-the-clock power
delivery. These measures are outlined below:
(i) Strengthening of transmission infrastructure and grid operation:
a. Development of Inter-State Transmission System (ISTS) and Intra-State Transmission
Systems (InSTS) for evacuation of renewable energy. Transmission system has been planned
for integration of over 500 GW RE capacity by the year 2030.
b. As per the National Electricity Plan (Volume-II Transmission), the transmission network is
planned to expand from about 5.04 lakh circuit km (as on February 2026) to 6.48 lakh circuit
km by 2032, and transformation capacity from about 1429 GVA to 2345 GVA. Inter-regional
transmission capacity is also planned to increase from 120 GW (as on February 2026) to 143
GW by 2027 and further to 168 GW by 2032.
c. Ministry of New and Renewable Energy (MNRE) is implementing Green Energy Corridor
(GEC) as Intra-State Transmission projects scheme in ten States namely Rajasthan,
Karnataka, Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, Kerala, Gujarat, Uttar
Pradesh, Maharashtra and Tamil Nadu in two phases, i.e. GEC-I and GEC-II for evacuation of
44 GW of RE.
d. Dedicated High Voltage Direct Current (HVDC) transmission links with bi-directional power
flow capability are envisaged to enable efficient long-distance bulk transfer of renewable
power and improve grid controllability.
e. Central Electricity Regulatory Commission through the Connectivity and General Network
Access to the Inter-State Transmission System (Third Amendment) Regulations, 2025 has
introduced solar-hour and non-solar-hour connectivity, enabling optimal use of transmission
infrastructure and promoting hybrid renewable projects combining solar, wind and BESS.
f. Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations
have been notified to prescribe the minimum technical requirements for the RE generating
plants to ensure the safe, secure and reliable operation of the grid.
g. Flexibilization of thermal generation is mandated to address the variability of RE generation.h. Government has set up thirteen Renewable Energy Management Centres (REMCs) for better
forecasting and real time monitoring of RE generation. The National Centre for Medium
Range Weather Forecasting (NCMRWF), in coordination with the Indian Space Research
Organisation (ISRO), provides advanced meteorological inputs to system operators and other
stakeholders, which are utilized for renewable generation and demand forecasting, thereby
supporting effective management of variability in RE generation.
i. Hybrid RE power plants, Energy Storage Systems such as BESS (Battery Energy Storage
System) and PSP (Pump Storage Project) are being promoted for mitigating variability in RE
generation and provide adequate frequency support to the grid.
(ii) Deployment of Smart Grid Technologies:
a. Advanced grid support technologies such as Static Synchronous Compensators
(STATCOMS), Synchronous Condensers (SynCONs) and other Flexible AC Transmission
System (FACTS) devices are planned to enhance voltage stability, improve system strength,
and support reliable integration of renewable energy.
b. Automatic Generation Control (AGC) and Ancillary Services (SRAS/TRAS) have been
implemented for frequency regulation and balancing.
c. Under the Revamped Distribution Sector Scheme (RDSS), Supervisory Control and Data
Acquisition (SCADA) works have been sanctioned for distribution system covering 455
towns.
(iii) Development of Energy Storage Systems (ESS):
a. ESS, as part of the power system, is defined under clause (50) of Section 2 of the Electricity
Act, 2003.
b. Implementation of two Viability Gap Funding (VGF) schemes for the development of
approximately 43.8 GWh of Battery Energy Storage Systems.
c. For incentivizing the ESS, 100% waiver of Inter-State Transmission System (ISTS) charges
has been extended for co-located BESS projects commissioned till June, 2028 and hydro
Pumped Storage Plants (PSPs) where construction work is awarded up to June, 2028.
d. Ministry of Power has issued Tariff Based Competitive Bidding (TBCB) Guidelines for
procurement of storage capacity and stored energy from Hydro PSP, Battery Energy Storage
Systems and Firm and Dispatchable RE (FDRE) to facilitate standardized and transparent
bidding process.
e. Ministry of Heavy Industries is implementing a Production-Linked Incentive (PLI) Scheme
with an outlay of ₹18,100 crore for establishing 50 GWh of Advanced Chemistry Cell
manufacturing capacity, of which 10 GWh is earmarked for grid-scale storage.
f. Off-stream closed-loop pumped storage schemes, irrespective of the quantum of capital
expenditure have been exempted from the requirement of concurrence by the CEA.
g. CEA in November, 2025, has issued revised guidelines for formulation of Detailed Project
Reports for Pumped Storage Schemes wherein it has been stipulated that Clearance of Inter-
state Aspects is not required for PSPs.
h. Government is providing budgetary support for the cost of enabling infrastructure (roads;
transmission line from power house to the nearest pooling point, including upgradation of
pooling substations of State or Central Transmission Utility; railway siding; ropeway;
communication infrastructure) for development of Hydro PSP.
This Information was given by The Minister of State in the Ministry of Power, Shri Shripad Naik, in a
written reply in the Rajya Sabha today.
*********NR/AP/MD
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