BHUBANESWAR: The cabinet on Wednesday approved several amendments to the Odisha Renewal Energy Policy (OREP), 2022 to boost renewable energy development, improve investor confidence and ensure affordable green power for consumers across the state.
The cabinet presided over by Chief Minister Mohan Charan Majhi cleared a proposal for extension of electricity duty exemption at the rate of 50 paise per unit to eligible net-metering consumers on consumption of energy from renewable energy projects established in the state for 10 years from the date of commissioning of the project.
Chief secretary Anu Garg told mediapersons that another amendment proposing 20 paise per unit state transmission utility (STU) charge exemption for standalone battery energy storage systems (BESS) commissioned in the state was also cleared. The exemption will be applicable provided the input energy for the BESS is sourced from the renewal energy projects and the output of energy will also meet the state’s demand.
The cabinet also approved the rationalisation of the wind power project allocation framework by removing the existing cumulative cap of 500 MW for wind power projects under the first-come-first-served basis. Other proposals approved by the cabinet included promotion of wind power parks. Besides, the cabinet also cleared the provision of up to 25 per cent right of first refusal (RoFR) capacity for renewable energy (RE) captive projects.
The Odisha Renewable Energy Policy, originally notified in 2022, was created to establish a supportive ecosystem for clean energy investments. The chief secretary said that the amendments have been approved based on stakeholder feedback and implementation experience.
Besides, GRIDCO Limited was designated as the State Nodal Agency to oversee and implement legacy small hydro electric projects (SHEP), aiming to streamline operations, harmonise guidelines and accelerate the state’s clean energy goals under amended renewable policy.
Garg said the cabinet also approved the amendment to Odisha Pumped Storage Hydro Projects (PSP) Policy, 2025 and operational guidelines which will remain effective till March 31, 2030.
To promote development of pumped storage projects, the policy extends a range of supports and incentives, including infrastructure support, exemption from electricity duty, cross-subsidy surcharge, wheeling charges, no water cess; provision of free power and local area development fund (LADF) benefits.
Stating that the policy is directed towards facilitating PSPs which have emerged as a critical component of the energy transition, the chief secretary said currently they are the most economical option for long duration energy storage.