Odisha Targets 10+ GW of RE Capacity by 2030 Under New Renewable Energy Policy
The government of Odisha notified โOdisha Renewable Energy Policy, 2022โ, its latestย renewable energy (RE) policy, on 30thย November 2030. This policy will remain in effect till 31stย March 2030, or until a new policy is announced by the state. It aims to achieve a 10+ GW renewable energy target by 2030. The previous state RE policy, which was issued in 2016, was in force till 31stย March 2022. Now, underpinned by the latest comprehensive policy, the Odisha government envisions a wholistic development of RE ecosystem in the state, with a strong emphasis on solar energy as a key component in achieving its renewable energy goals.
The 2022 policy encompasses various energy technologies including all large hydro, small hydro, ground mounted solar, roof top solar, floating solar, canal top solar energy, wind, biomass, energy storage (including pumped storage hydro, battery energy storage system), waste-to-energy, green hydrogen/green ammonia projects to reach the renewable energy target by 2030.
With these technologies under consideration, the Odisha government provides a range of provisions promoting development of solar energy and other RE projects in the state to reach the renewable energy target by 2030. Key incentives extended by the state government have been discussed in the following table.
Table 1: Odisha Renewable Energy Policy 2022 โ Key Incentives
<td width=”123″><p>Stamp Duty</td>
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6
Land</p>
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ยทย ย ย ย ย ย Land will be made available at pre-specified rate; no stamp duty, conversion and registration charges.
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Serial No. |
Particular |
Description |
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1 |
Electricity Duty (ED) |
ยทย ย ย ย ย ย Exemption of INR 0.5 per unit on ED (Change w.r.t previous policy: 100% exemption) will be provided to captive/ open access consumers on consumption of energy from RE projects. ยทย ย ย ย ย ย This exemption will be available for consumption of energy from the project for a period of 15 years from the date of commissioning of the project. In case a project is commissioned before 30th March 2026, the exemption will be extended for 5 more years, i.e., 20 years in total. ยทย ย ย ย ย ย Energy storage projects based on any technology will be exempted from payment of ED on input energy at the rate of INR0.5 per unit for a period of 15 years from the date of COD, provided such energy is sourced from RE projects in Odisha. |
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2 |
Cross-subsidy Surcharge (CSS) |
ยทย ย ย ย ย ย 50% exemption of CSS (Status w.r.t previous policy: 100% exemption) will be provided to open access consumers, on consumption of energy from RE projects commissioned in the state during the policy period for 15 years. |
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3 |
State Transmission Utility (STU) Charges |
ยทย ย ย ย ย ย INR0.2 per unit on STU charges (Status w.r.t previous policy: 80% exemption) shall be provided to captive/ open access consumers on consumption of energy from RE projects commissioned in the state during the policy period for 15 years. ยทย ย ย ย ย ย In case a project is commissioned before 30th</sup> March 2026, the exemption will be extended for 5 more years, i.e., 20 years in total. |
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4 |
Wheeling Charges |
ยทย ย ย ย ย ย 25% exemption of wheeling charges (Status w.r.t previous policy: 80% exemption) will be provided to open access consumers, on consumption of energy from RE projects commissioned in the state during the policy period for 15 years. |
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5< /p> |
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ย ยทย ย ย ย ย ย Stamp duty on purchase/lease of land, land conversion charges and registration charges shall not be applicable for RE projects. |
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7 |
Technology-specific Incentives |
ยทย ย ย ย ย ย Large Hydro oย ย No free power shall be charged for the projects which intend to sale the entire power or consume the entire power within the state. ยทย ย ย ย ย ย Small Hydro oย ย The initial concession period for all projects will be for 40 years and may be extended by the government. ยทย ย ย ย ย ย Rooftop Solar oย ย Rooftop consumers will be provided subsidies/incentives as per the guidelines of central/state government. oย ย Single window clearances & standard timelines will be followed in registration and approvals. ยทย ย ย ย ย ย Solar-based EV Charging Station oย ย Solar installations for EV charging on government land will be eligible for a 50% concession on land lease payment for the first 50 MW of installation under the non-park solar category during the policy period. ยทย ย ย ย ย ย Biomass oย ย To ensure feedstock availability, waste and fallow land will be made available at suitable locations for raising energy plantations to meet up to 20% of annual biomass fuel requirement. |
8 |
Banking |
ยทย ย ย ย ย ย Banking will be allowed for open access and captive consumers within the state on monthly basis. |
Source: Odisha Renewable Energy Policy 2022, JMK Research
In addition, the policy intends to promote solar parks having a minimum capacity of 25 MW to reduce the cost of generation & associated infrastructure. As for floating solar plants, the locations for the projects will be allocated for an initial term of 30 years and may be extended for another five years. The policy further proposes that the approval/allotment of all RE projects will be processed on a single window platform in a time-bound manner.
One of the main drivers behind the strong advocacy by the Odisha government for RE capacity addition in the state is the new renewable purchase obligation (RPO) trajectory set by the central government. As per this rule, obligated entities including distribution companies (DISCOMs), captive users and open access consumers are mandated to achieve 43.3% RPO by FY2030. The current (FY2023) RPO target is 14.5%. It can be noted that in FY2022, Odisha complied 98% of the RPO Target of 13.25%.
By introducing favourable policy measures and aggressive incentives to boot (albeit certain exemptions have been cut down w.r.t previous policy), Odisha is well-positioned to attract a robust pipeline of RE capacity and become a critical hub for low-carbon energy projects.