Bhubaneswar: The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, on Wednesday approved key amendments to the Odisha Renewable Energy Policy (OREP), 2022.
The decision aims to boost renewable energy development, improve investor confidence, and ensure affordable green power for consumers across the State.
The Odisha Renewable Energy Policy, originally notified on November 30, 2022, was created to establish a supportive ecosystem for clean energy investments. Based on stakeholder feedback and implementation experience, the government introduced several key policy refinements. These are;
- Extension of the electricity duty exemption at the rate of 50 paise per unit for eligible net-metering consumers on energy consumed from state-established renewable projects for 10 years from the commissioning date.
- A 20 paise per unit State Transmission Utility (STU) charge exemption for Standalone Battery Energy Storage Systems (BESS) commissioned in Odisha, provided the input energy comes from RE projects and output energy meets state demand.
- Removal of the existing cumulative cap of 500 MW for wind power project allocation under the first-come-first-served mechanism.
- Direct promotion and encouragement of dedicated Wind Power Parks.
- Provision of up to 25% Right of First Refusal (RoFR) capacity for RE Captive projects.
- Harmonization of operational guidelines and designation of GRIDCO as the Nodal Agency for implementing legacy Small Hydro Electric Projects (SHEP).
The Cabinet also approved the Amendment to Odisha PSP Policy, 2025 and Operational Guidelines on PSP Policy-2025, which will remain effective until March 31, 2030. The policy provides a dedicated framework for Pumped Storage Hydro Projects—a cost-effective solution for long-duration energy storage required to balance intermittent renewable power.
PSPs store surplus electricity during off-peak hours and release it during peak demand, enhancing grid stability through instantaneous load response, frequency regulation, spinning reserves, and black start capabilities. The policy aligns with Odisha’s broader goal to add approximately 11,000 MW (11 GW) of renewable energy capacity by 2030.
To encourage developer participation, the PSP policy offers key incentives like full exemption from Electricity Duty, cross-subsidy surcharge, wheeling charges, STU charges, and water cess. It provides infrastructure support, provision of free power, and access to Local Area Development Fund (LADF) benefits.
These policy revisions are expected to accelerate green power projects and further solidify Odisha’s standing as a premier destination for clean energy investments.