Odisha is reshaping its energy policy framework as the state discusses proposed investments from the Adani Group and introduces a series of policy reforms aimed at accelerating renewable energy, battery storage and pumped-storage development.
According to the Odisha Energy Department, a meeting was held at Kharavel Bhawan to discuss the Adani Group’s proposed investments in various projects in Odisha’s clean-energy sector. The discussions focused on strengthening Odisha’s long-term energy security and advancing the state’s clean-energy ambitions.
Odisha Looks to Strengthen Renewable Energy Framework
The developments come alongside a series of amendments approved by the Odisha Cabinet to the Odisha Renewable Energy Policy (OREP), 2022. The Odisha government said the amendments are intended to accelerate renewable-energy development, strengthen investor confidence and support access to affordable green power.
One of the key changes is the extension of the electricity-duty exemption at 50 paise per unit for eligible net-metering consumers using electricity from renewable energy projects established in Odisha. The exemption will be available for 10 years from the commissioning of the eligible renewable energy project.
BESS Incentive Extended
The amended policy also provides for an extension of the 20 paise per unit STU charge exemption for standalone Battery Energy Storage Systems (BESS) commissioned in Odisha. The incentive is subject to conditions, including sourcing input energy from renewable energy projects and using the output to meet the state’s electricity demand. The move is aimed at supporting energy-storage infrastructure as Odisha expands its renewable-energy capacity.
Wind Power Cap Removed
Odisha has also removed the existing 500 MW cumulative cap for allocation of wind power projects under the first-come-first-served mechanism. The government is additionally promoting Wind Power Parks to facilitate larger-scale wind-energy development across the state.
Another policy provision introduces a Right of First Refusal (RoFR) of up to 25% of capacity for renewable energy captive projects. The state has also moved to harmonize operational guidelines with the aim of improving efficiency and streamlining renewable energy project implementation. For legacy Small Hydro Electric Power (SHEP) projects, GRIDCO has been designated as the nodal agency for implementation.
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Pumped Storage Policy Gets Changes
The Odisha Cabinet has also approved amendments to the state’s Pumped Storage Project (PSP) Policy. Among the changes is an extension of the registration window from three weeks to three months, giving developers more time to complete the registration process. The amended framework also provides for a revised Right of First Refusal mechanism, with 25% for captive users and 50% for independent power producers.
The policy further provides greater flexibility for Central Public Sector Undertakings and State Public Sector Undertakings, along with clearer provisions relating to registration fees. The government said the amendments are intended to facilitate smoother implementation and accelerate the development of pumped-storage projects in Odisha.
Adani Discussions Come Amid Broader Clean-Energy Push
The meeting with the Adani Group comes as Odisha seeks to strengthen its energy infrastructure and attract investments across renewable energy and energy-storage segments. Pumped storage and battery storage can play an important role in supporting the integration of intermittent renewable sources such as solar and wind into the electricity system. The combination of renewable generation, storage infrastructure and policy incentives could therefore help Odisha build a more flexible and reliable clean energy system.
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The Odisha government said the latest policy refinements are expected to provide a significant boost to renewable-energy development and reinforce the state’s position as a destination for clean energy investments.
The discussions with Adani Group are part of Odisha’s wider effort to attract investment and strengthen its energy infrastructure. While the group’s proposals are under discussion, the state’s latest policy measures are focused on creating a more supportive framework for renewable energy, storage and other clean energy projects.
Source: Odisha Energy Department, Government of Odisha
