BHUBANESWAR: The state government issued operational guidelines for the Pumped Storage Hydro Projects (PSPs) Policy-2025 to fast-track energy storage infrastructure and enable smoother integration of renewable energy into the grid.
The guidelines issued by the Energy department said it will provide a structured framework for implementation, monitoring and evaluation of projects and boost investment both from government and private sectors.
The Grid Corporation of Odisha Limited (GRIDCO) will be the nodal agency for allocation of self-identified and state-identified project sites. The state government has already identified 45 potential PSP sites.
All projects will follow the build-own-operate-transfer (BOOT) model with a 40-year concession period, extendable by 30 years. Post-concession, the projects will be transferred to the state government, except captive PSPs which retain the status of captive generating project (CGP).
PSPs will get all benefits under Odisha Renewable Energy Policy, 2022 (OREP-22), along with key exemptions such as no electricity duty or cross-subsidy surcharge on input energy, no water cess for non-consumptive use and no obligations for free power or contribution towards local area development fund (LADF).
Developers are eligible for central budgetary support, full RE incentives if energy input is sourced from in-state renewables and face no penalty for sourcing from outside Odisha. Projects availing IPR incentives cannot claim benefits under this policy or OREP-22.
Deputy chief minister and Energy minister Kanak Vardhan Singh Deo said the policy is a vital step toward grid stability and Net Zero goals. With streamlined execution and faster approvals, Odisha is set to scale up PSP capacity rapidly, he said.
“With its PSP Policy, Odisha is laying the groundwork for a resilient, renewable-powered future. This marks a decisive step toward sustainable growth and climate-conscious development,” he added.