The Cabinet Committee on Economic Affairs, chaired by the Hon’ble Prime Minister, Shri Narendra Modi, today approved the project on Green Energy Corridor (GEC) Phase-II – Inter-State Transmission System (ISTS) for 13 GW Renewable Energy Project in Ladakh.

The project is targeted to be set up by FY 2029-30 with total estimated cost of Rs.20,773.70 crore and Central Financial Assistance (CFA) @ 40 percent of the project cost i.e. Rs.8,309.48 crore.

 Keeping in view the complex terrain, adverse climatic conditions and defence sensitivities of Ladakh region, Power Grid Corporation of India Limited (POWERGRID) will be the Implementing Agency for this project. State of the art Voltage Source Converter (VSC) based High Voltage Direct Current (HVDC) system and Extra High Voltage Alternating Current (EHVAC) systems will be deployed.

The transmission line for evacuating this power will pass through Himachal Pradesh and Punjab up to Kaithal in Haryana, where it will be integrated with the National Grid. An interconnection is also planned from this project in Leh to existing Ladakh grid so as to ensure reliable power supply to the Ladakh. It will also be connected to Leh-Alusteng-Srinagar line to provide power to Jammu & Kashmir. The project will entail setting up of 713 km transmission lines (including 480 km HVDC line) and 5 GW capacity of HVDC terminal each at Pang (Ladakh) and Kaithal (Haryana).

The project will contribute to achieving the target of 500 GW of installed electricity capacity from non-fossil fuels by year 2030. The project will also help in developing long term energy security of the country and promote ecologically sustainable growth by reducing carbon footprint. It will generate large direct & indirect employment opportunities for both skilled and unskilled personnel in power and other related sectors, especially in Ladakh region.

This project is in addition to Intra-State Transmission System Green Energy Corridor Phase-II (InSTS GEC-II), which is already under implementation in the States of Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh for grid integration and power evacuation of approx. 20 GW of RE power and is expected to be completed by 2026. The InSTS GEC-II scheme targets addition of 10753 ckm of transmission lines and 27546 MVA capacity of substations having estimated project cost of Rs.12,031.33 crore and CFA @33%, i.e. Rs.3970.34 crore.

 Background:

The Prime Minister, during his Independence Day Speech on 15.08.2020, announced setting up of 7.5 GW Solar Park in Ladakh. After extensive field survey, the Ministry of New and Renewable Energy (MNRE) prepared a plan to set up 13 GW Renewable Energy (RE) generation capacity along with 12 GWh Battery Energy Storage System (BESS) in Pang, Ladakh. For evacuating this huge quantum of power, it will be necessary to create an inter-state transmission infrastructure.

Green Energy Corridor approval enables inter-state transmission for large-scale renewable integration in Ladakh and grid linkage. Cabinet approval authorises the Green Energy Corridor Phase II Inter State Transmission System for renewable generation in Ladakh, designates Power Grid Corporation as Implementing Agency, and requires VSC HVDC and EHVAC systems to link Pang and Kaithal terminals with the national grid, interconnect with the Ladakh grid and Leh-Alusteng-Srinagar route, and provide central financial assistance to support completion and grid integration.