Odisha Cabinet Extends Incentives for Renewable Energy and BESS Projects
The Odisha Cabinet has approved amendments to the Odisha Renewable Energy Policy (OREP), 2022, aimed at accelerating renewable energy development, improving investor confidence and supporting affordable green power across the state.
Under the amended policy, eligible net-metering consumers using electricity from renewable energy projects established in Odisha will receive an ₹0.50 per unit electricity duty exemption for 10 years from the date of project commissioning.
The Cabinet has also extended a ₹0.20 per unit State Transmission Utility (STU) charge exemption for standalone Battery Energy Storage Systems (BESS) commissioned in Odisha. The benefit is subject to the condition that the BESS input energy is sourced from renewable energy projects and the stored electricity is used to meet the state’s demand.
In a significant move for wind energy, Odisha has removed the existing 500 MW cumulative capacity cap for wind projects allocated under the first-come-first-served mechanism. The amended policy also provides for the development of Wind Power Parks to support larger-scale wind deployment.
The amendments further introduce a Right of First Refusal (RoFR) of up to 25% capacity for renewable energy captive projects and seek to streamline project implementation through harmonised operational guidelines. GRIDCO has also been designated as the nodal agency for legacy Small Hydro Electric Power projects.
Key Features
- ₹0.50/unit electricity duty exemption for eligible RE net-metering consumers
- Exemption available for 10 years from commissioning
- ₹0.20/unit STU charge exemption for standalone BESS
- BESS input energy must come from renewable energy projects
- Stored BESS output must meet Odisha’s state demand
- 500 MW wind power cap removed
- Provision for Wind Power Parks
- Up to 25% RoFR for renewable energy captive projects
- Harmonised operational guidelines for RE projects
- GRIDCO designated as nodal agency for legacy small hydro projects
- Policy changes aimed at strengthening renewable energy investment and clean power deployment in Odisha
