Odisha Eases Renewable Energy Rules to Attract Investments in Solar, Wind and Storage

Bhubaneswar: The Odisha government has approved a set of amendments to the Odisha Renewable Energy Policy (OREP), 2022, aimed at accelerating renewable energy deployment, attracting fresh investments and making green power more affordable for consumers.

The decision was taken at a State Cabinet meeting chaired by Chief Minister Mohan Charan Majhi on Wednesday. The amendments seek to address implementation-related issues and incorporate stakeholder feedback received since the policy was introduced in November 2022.

One of the key changes is the extension of an electricity duty exemption of 50 paise per unit for eligible net-metering consumers consuming electricity generated from renewable energy projects established within Odisha. The exemption will be available for 10 years from the date of commissioning of the project.

The Cabinet has also approved incentives for battery energy storage. Standalone Battery Energy Storage Systems (BESS) commissioned in Odisha will receive a 20 paise per unit exemption on State Transmission Utility (STU) charges, provided the energy charged into the system is sourced from renewable energy projects and the stored power is used to meet the state’s demand.

Wind power framework expanded

The amendments have also revised the framework for wind energy projects in the state. The existing cumulative 500 MW cap for allocation of wind power projects under the first-come-first-served mechanism has been removed.

The revised policy also provides for the promotion of Wind Power Parks in Odisha, creating scope for larger-scale development of wind energy infrastructure.

For renewable energy captive projects, the amended policy provides a Right of First Refusal (RoFR) of up to 25 per cent of the capacity.

The government has also approved harmonisation of operational guidelines to ensure smoother and more effective implementation of the renewable energy policy.

GRIDCO to implement legacy SHEP projects

Another important decision is the designation of GRIDCO as the nodal agency for implementation of legacy Small Hydro Electric Power (SHEP) projects.

The Odisha Renewable Energy Policy, 2022 was notified on November 30, 2022, with the objective of creating a favourable ecosystem for renewable energy investments and facilitating the state’s transition towards cleaner sources of power.

Officials said the latest amendments are based on the government’s experience in implementing the policy and feedback from stakeholders. The changes are expected to provide greater clarity to investors and improve the operational framework for renewable energy projects.

The government expects the revised policy to attract investments across solar, wind, energy storage and other renewable energy segments, while strengthening Odisha’s clean energy infrastructure.

The amendments are also aimed at balancing investment promotion with consumer interests by encouraging greater availability of renewable power at competitive prices. The government said the revised framework would help strengthen investor confidence and further position Odisha as an attractive destination for clean energy investments.