Bhubaneswar, Sep 19
The Odisha government has launched the Pumped Storage Project (PSP) policy to fast-track energy storage infrastructure and enable smoother integration of renewables into the grid, said the Energy department on Thursday.
The department in an official statement released on Thursday asserted that PSPs are emerging as a vital enabler of India's energy transition. It further added that by storing surplus energy during off-peak hours and releasing it during peak demand or low renewable availability, PSPs offer cost-effective, long-duration grid-scale storage.
"GRIDCO shall be the nodal agency, for allocation of both self-identified and state-identified project sites. 45 numbers of potential PSP sites identified by the state have been published on the official web portal of GRIDCO. Operational guidelines for the implementation of the PSP policy have been notified on September 17, 2025," informed the department.
According to the official statement, all projects will follow the Build-Own-Operate-Transfer (BOOT) model with a 40-year concession period, extendable by 30 years. Post-concession projects will be transferred to the State Government, except captive PSPs which retain CGP status.
Deputy Chief Minister and Energy Minister Kanak Vardhan Singh Deo called the policy a vital step toward grid stability and Net Zero goals. He said that with streamlined execution and faster approvals, Odisha is set to scale up PSP capacity rapidly.
PSPs in Odisha enjoy 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 LADF contributions.
The Energy department also informed that the developers of PSPs are eligible for central budgetary support, full Renewal Energy 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.
"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," added Deputy CM Singh Deo.
— IANS
Reader Comments
Finally some concrete action on energy storage! The 40+30 year concession period is attractive for investors. Hope this creates local employment opportunities in Odisha too ðŸ™
Good policy but I hope they conduct proper environmental impact assessments. Pumped storage projects can affect local ecosystems and water resources. Development should be sustainable, not just rapid.
As someone working in renewable energy sector, this is a game-changer! The exemptions on electricity duty and cross-subsidy will make these projects financially viable. Other states should follow Odisha's lead ðŸ‘
45 potential sites identified! That's impressive planning. Hope the execution matches the vision. Odisha has great potential for renewable energy with its geography.
The BOOT model makes sense for long-term infrastructure. Transfer to state government after concession period ensures public ownership eventually. Smart thinking! 💡
This is exactly the kind of forward-thinking policy India needs for energy security. Renewable integration is crucial for our growing economy. Kudos to Odisha government! 🌞⚡
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