Odisha is among the leading industrialised states in the country and a continuous increase in energy demand from all sectors is expected in the years to come. There is clear demand for RE from the DISCOMs and the industries due to RPO and Net Zero commitments. It is desirable that these obligated entities meet most of their RE requirement from projects developed inside the State. Hence, the Government has formulated a new RE Policy to facilitate development of commercially viable projects across multiple RE technologies within the State both for captive and open access consumption.
As Industries and Governments embark upon the journey of energy transition, it is essential to ensure that the transition is ‘just’. Proper training will be required for the youth and working population to take up jobs in RE sector. The Policy aims to create skilled and semi-skilled manpower for the RE sector.
With this primary objective to create an enabling environment for harnessing maximum potential of Renewable Energy in the State through Government, private sector and individual efforts, the Odisha Renewable Energy Policy 2022 has been developed.
To harness the renewable energy (RE) potential of Odisha and accelerate investment in the RE sector for ensuring energy security, promoting socio-economic growth, and protecting the environment.
The Policy aims to achieve following objectives: -
- To accelerate adoption of clean energy alternatives and decarbonize the energy sector which includes both grid-based electricity consumption and captive consumption of industrial consumers in the State
- To harness the clean energy potential of the State and make best use of the available resources by facilitating development of green energy projects in the State
- To attract investment in the clean energy sector, create job opportunities and develop the State economy
- To facilitate R&D and promote new initiatives & emerging RE technologies in the State
Scope of the Policy
- All large hydro, small hydro, ground mounted solar, roof top solar, floating solar, canal top solar, wind, biomass, energy storage (including pumped storage hydro, battery energy storage system), waste-to-energy, green hydrogen/green ammonia projects or any other renewable energy technology and new initiatives/ pilot projects commissioned in the State of Odisha during the Policy period shall be guided by this Policy.
- Any individual or company or body corporate or association or society or body of individuals, whether incorporated or not, shall be eligible for setting up Renewable Energy (RE) projects, either for the purpose of captive use and/or for selling of electricity to the distribution licensee or third party including under the Renewable Energy Certificate (REC) mechanism subject to provisions of this Policy and in accordance with the Electricity Act 2003, as amended from time to time and the Rules made thereafter.
- The benefits under this Policy shall not be applicable to projects sanctioned prior to the date of notification of this Policy or which is commissioned post the policy period. This Policy also does not cover the projects for which PPAs have already been signed.
Exemptions & Incentives:
The Government of India has decided to phase out the waiver of ISTS charges in the following manner:
| Period of Commissioning
| Applicable ISTS charges
| Up to 30/06/2025
| 01/07/2025 to 30/06/2026
| 25% of applicable ISTS charges
| 01/07/2026 to 30/06/2027
| 50% of applicable ISTS charges
| 01/07/2027 to 30/06/2028
| 75% of applicable ISTS charges
| 01/07/2028 onwards
| 100% of applicable ISTS charges
Hence, the State Government shall extend the following incentives to promote development of RE projects in the State:
- Exemption of fifty (50) paisa per unit on Electricity Duty shall be provided to captive / open access consumers on consumption of energy from RE projects set up inside the State during the policy period. Such ED exemption shall be available for consumption of energy from the project for a period of fifteen (15) years from the date of commissioning of the project. In case a project is commissioned before 303.2026, the exemption shall be extended for five (5) more years, i.e., twenty (20) years in total.
- Energy Storage Projects based on any technology shall be exempted from payment of Electricity Duty on input energy at the rate of fifty (50) paisa per unit for a period of fifteen (15) years from the date of COD, provided such energy is sourced from RE projects in Odisha.
- Fifty percent (50%) exemption of Cross-Subsidy Surcharge shall be provided to open access consumers, on consumption of energy from RE projects commissioned in the State during the Policy period for fifteen (15) years. The OERC shall issue necessary orders in this regard.
- Exemption of twenty (20) paisa per unit on STU charges shall be provided to captive / open access consumers on consumption of energy from RE projects commissioned in the State during the Policy period for fifteen (15) years. In case a project is commissioned before 31.03.2026, the exemption shall be extended for five (5) more years, i.e., twenty (20) years in total. The OERC shall issue necessary orders in this regard.
- Twenty-five percent (25%) exemption of wheeling charges shall be provided to captive / open access consumers on consumption of energy from RE projects commissioned in the state during the Policy period for fifteen (15) years. The OERC shall issue necessary orders in this regard.
- Stamp duty on purchase/lease of land, land conversion charges and registration charges shall not be applicable for RE projects. The Revenue and Disaster Management Department shall issue necessary notifications in this regard.
- Project developer is permitted to connect the RE project with State Transmission Utility (STU), subject to the evacuation feasibility. Grant of connectivity approval from OPTCL will be provided preferably within 15 days from the date of receipt of requisite documents for registration.
- No clearance from State Pollution Control Board, Odisha would be required for RE projects except for Hydro, PSH, biomass and waste to energy projects.
Government land earmarked for industry under the "Land Bank" scheme of IDCO and other Government land, wherever available, shall be allotted for the RE projects on priority at the rates specified in the IPR.
However, projects with an operational life of 25-30 years shall also be allotted Government land on lease basis at an annual lease rent of 2% of the prevailing IPR rate. The duration of lease shall coincide with the duration of PPA/life of the project and some additional time allotted for development, construction and decommissioning of the project as applicable i.e., for a duration of 30-35 years.
Policy Measures for Specific Technologies:
All the technology-agnostic Policy measures mentioned in the policy above shall be applicable to all the RE technologies over and above the technology-specific policy measures.
This section defines the technology-specific policy measures for the following type of projects which mentions the bidding criteria, sale of power, incentives, mode of development, concession period etc.
- Large Hydro
- Pumped Storage Hydro
- Small Hydro
- Floating Solar
- Solar (Land Based & Roof Top)
- Green Hydrogen and Green Ammonia
The Department of Energy shall designate an entity as the Nodal Agency who shall be responsible for implementation of this Policy and development of all renewable energy projects in the State.
The designated Nodal Agency shall perform the tasks specified in this Policy.
Project Approval Committees
A Single Window Committee shall be constituted under the chairmanship of Principal Secretary / Secretary, Department of Energy, Govt. of Odisha to track the progress and take decisions on project approvals. The Nodal Agency shall examine and submit proposals with recommendations to the Single Window Committee. The responsibilities of the Single Window Committee are as follows:
- Approve projects less than 50 MW capacity for allotment/award on recommendation of the Nodal Agency.
- Refer projects between 50-200 MW capacity to a committee headed by the Chief Secretary and projects >200 MW capacity to the Cabinet Committee along with recommendations for allotment/award.
- Resolution of Policy level issues for deployment of various RE technologies.
- Monitoring the progress of project implementation cleared for allotment/award.