THEBUSINESSBYTES BUREAU

BHUBANESWAR, AUGUST 12, 2026

In a major push to accelerate Odisha’s transition towards a cleaner and more affordable energy future, the state Cabinet on Wednesday approved a series of amendments to the Odisha Renewable Energy Policy (OREP), 2022, offering fresh incentives to consumers and investors while creating a more conducive ecosystem for solar, wind and battery storage projects.

The decisions, taken at a Cabinet meeting chaired by Chief Minister Mohan Charan Majhi, are aimed at giving renewed momentum to renewable energy development, enhancing investor confidence and ensuring that the benefits of green power translate into more affordable electricity for consumers.

The OREP, 2022, notified on November 30, 2022, was introduced to create a favourable environment for renewable energy investments and facilitate Odisha’s transition towards clean energy. Based on the experience gained during its implementation and feedback received from stakeholders, the government has now introduced a set of refinements intended to improve operational efficiency and strengthen renewable energy deployment across the state.

Under the amended policy, eligible net-metering consumers will receive an electricity duty exemption of 50 paise per unit on energy consumed from renewable energy projects set up within Odisha. The exemption will remain available for 10 years from the date of commissioning of the project, providing a significant incentive for greater adoption of renewable energy.

In another key measure aimed at strengthening energy storage infrastructure, the Cabinet approved a 20 paise per unit exemption on State Transmission Utility (STU) charges for standalone Battery Energy Storage Systems (BESS) commissioned in Odisha. The benefit will be available where the input energy is sourced from renewable energy projects and the stored output is utilised to meet the state’s electricity demand.

The government has also rationalised the framework for wind power development by removing the existing cumulative cap of 500 MW for allocation of wind power projects under the first-come-first-served mechanism. The move is expected to open up greater opportunities for wind energy developers and facilitate larger investments in the sector.

The amended policy further provides for the promotion of Wind Power Parks in Odisha, signalling the government’s intent to develop renewable energy projects at scale and create dedicated ecosystems for clean power generation.

To provide greater certainty to captive renewable energy developers, the policy will also include a Right of First Refusal of up to 25 per cent of capacity for Renewable Energy Captive projects. Operational guidelines have additionally been harmonised to ensure smoother and more effective implementation of the policy provisions.

The Cabinet also decided that GRIDCO will function as the nodal agency for implementation of legacy Small Hydro Electric Power (SHEP) projects, bringing greater institutional clarity to their execution.

Officials said the amendments are expected to provide a significant boost to renewable energy development in Odisha and further strengthen the state’s position as an attractive destination for clean energy investments.

The government said the policy changes strike a balance between encouraging investment and ensuring consumer benefits, with the broader objective of making renewable power more affordable while creating a stable and predictable environment for investments in solar, wind, energy storage and other emerging green energy sectors.