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New Delhi/Amaravati: The Centre has approved expansion of the power transmission network in Andhra Pradesh for Rs 21,838 crore as part of its major push for green energy infrastructure under the Green Energy Corridor Phase-III scheme. The plan aims to support rising electricity demand through high-capacity transmission lines and new substations. The state’s transmission utility is accelerating preparations to strengthen the grid and improve its readiness for future power requirements.

The Centre approved the GEC-III scheme to strengthen India’s Intra-State Transmission System (InSTS) to enable evacuation of up to 135 gigawatts (GW) of renewable energy across States/ Union Territories. The scheme also provides for deployment of 50 GWh of Battery Energy Storage Systems (BESS) at the Renewable Energy (RE) developer/generator end or any other location of importance for grid flexibility to address intermittency, congestion, peak-hour curtailment and meet non-solar hour demand. The scheme will facilitate grid integration and power evacuation within the States/UTs of India.
The scheme is targeted to be set up by FY 2032-33 with total project outlay of Rs.1,86,405 crore, comprising Rs.1,36,378 crore for the development of Intra-State Transmission Systems (InSTS) under GEC-III, Rs.50,000 crore for 50 GWh of Battery Energy Storage Systems (BESS). The Scheme involves a total Central Financial Support of Rs.54,082 crore. 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.
All Greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB) mode, while brownfield upgradation and network strengthening works will be executed under Cost Plus Basis (CPB). The State Transmission Utilities will be the overall implementing agency, and Transmission Service Providers (TSPs) will participate under TBCB on a Build-Own-Operate-Maintain (BOOM) model.
Around 33% of the project cost, which is about Rs 7,207 crore, will be given as a grant to Andhra Pradesh, and the remaining Rs 14,631 crore will be arranged as loans by AP Transco, and the target is to complete it within five years. The focus would be primarily on evacuating and integrating solar and wind energy generated in the Rayalaseema region and other high-potential green zones into the main grid, and setting up high-capacity transmission lines and new substations in line with the growing power demand. The state power transmission corporation is expediting preparations to strengthen the grid, keeping future power needs in view.
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