Green Energy Corridors – Grid Interactive Renewable Power: Most Important Topic for 2021 CAT

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  • For evacuation of large scale renewable energy, Intra State Transmission System (InSTS) project was sanctioned by the Ministry in FY 2015 - 16. It is being implemented by eight renewable rich States of Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, & Himachal Pradesh & Madhya Pradesh. The project is being implemented in these States by the respective State Transmission Utilities (STUs) .
  • The project includes about approx. 9400 ckm transmission lines & Substations of total capacity of approx. 19000 MVA to be completed by March 2020. The purpose is to evacuate approx. 20,000 MW of large scale renewable power and improvement of the grid in the implementing States.
  • The total project cost is approx. ₹ 10141 crores. The funding mechanism consists of 40 % from Government of India Grant (total ₹ 4056.67 crores) , 20 % from State Equity and 40 % from loan from KfW, Germany (500 million EUR) .
  • Energy is regarded as the most important building block in human development & it is a key factor that influences the sustainable development of any nation. The conventional sources have an intimidating shadow on our present and future global safety, environmental values, health & society in general.
  • Hence, there is an urgent need to promote renewable energy in Indian power sector. Renewable energy is the energy collected from renewable resources, which are naturally replenished on human timescale such as sunlight, wind, rain, tides, waves & geothermal heat. It is the cleanest source of energy with least carbon emissions or pollution.
  • This helps on reducing reliance on coal & other fossil fuels. With the expansion of renewable energy, India can improve air quality, reduce global warming emissions, create new industries and jobs, & help to move world towards a cleaner, safer, & affordable energy.
Make in India
  • The Central grant is disbursed in two installments to the STUs:
    • 70 % Advance on the award of contract.
    • Balance 30 % after successful commissioning & three months performance testing.

Institutional Arrangements & Implementation Strategy

  • The project is being implemented by respective State Transmission Utilities (STUs) which allot the work through competitive bidding process. The Ministry monitors the project every month. A Project Appraisal Committee under chairmanship of concerned Joint Secretary & with members from CEA & PGCIL monitors the project & recommends on the disbursal of central grant to the STUs.

Advantages of India

  • Robust Demand: With the growing Indian economy, the electricity consumption is projected to reach 15,280 TWh by 2040.
  • Increasing Investments: With Indian government՚s ambitious targets, the sector has become quite attractive to foreign and Indian investors. It is expected to attract investments Upto USD 80 billion (Euros 70 billion) in next four years.
  • Competitive Advantage: Indian has sunlight available throughout the year & has a large hydropower potential.

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