Odisha seeks Centre's help to turn state into a national model in energy sector Energy Watch
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Odisha seeks Centre's help to turn state into a national model in energy sector

Odisha seeks Centre’s support to scale up renewables, storage, and transmission as it targets 61% clean power by 2036

Shalini Sharma

New Delhi: Odisha has successfully transitioned from a “power-sufficient to a power-empowered” state and is now aiming to emerge as a model for India’s electricity sector, the state government said on Tuesday. Deputy Chief Minister KV Singh Deo, who also oversees Odisha’s Department of Energy, made the remarks at the Eastern Region Power Ministers’ Conference held in Patna.

Speaking at the event chaired by Union Power Minister Manohar Lal Khattar, Deo said Odisha has fully met its peak power demand of 6,242 MW and is now focused on scaling clean energy, transmission infrastructure, and grid resilience. "I had the opportunity to present Odisha’s strides in becoming a power-empowered state, where 44 percent of our total generation capacity now stems from non-fossil sources," said Deo in a post on X (formerly Twitter) after the meeting.

Clean energy target of 61% by 2036

The state’s roadmap to 2036 envisions 61 percent of its power portfolio coming from non-fossil sources, Deo said. Of the 11,294 MW of planned clean energy capacity, 3,904 MW has already been contracted. The portfolio will include solar, wind, hydro, distributed renewable energy, and pumped storage systems. Odisha is also seeking central support for viability gap funding (VGF) for pumped storage projects, along with assistance for floating solar, offshore wind, and a study of tidal energy potential along its coastline.

Deo said Odisha has submitted a proposal to the Centre under the Power System Development Fund (PSDF) for a 500 MWh Battery Energy Storage System (BESS), underlining the state’s commitment to grid innovation.

Odisha seeks central support for key energy initiatives

Deo urged the Centre to provide proactive support for several critical initiatives. These include the sanction of Rs 6,284 crore under the Revamped Distribution Sector Scheme (RDSS), central financial assistance for disaster-resilient power infrastructure, and approval for 800 MW power allocation from the NLC Talabira Phase II project.

He also called for central funding under the Green Energy Transmission Corridor Projects, which are essential for integrating large-scale renewable energy into the state grid. Additionally, the state sought viability gap funding (VGF) for pumped storage projects, similar to support offered for battery energy storage systems, as well as assistance for floating solar and offshore wind projects, and a study on tidal energy potential along Odisha’s coastline.

Strengthening infrastructure for future demand

Odisha is also expanding its transmission network to match growing industrial demand in regions like Paradeep, Khuntuni, and Joda. By 2030, the state will have 225 substations and 20,939 circuit kilometers (ckm) of transmission lines, with a total transformation capacity of 45,369 MVA, said the Deputy CM.

Key renewable power evacuation corridors are also being developed, including the Hirakud–Kolabira–Duburi and Indravati–Theruvali–Gopalpur routes, along with multiple high-voltage line projects to ensure efficient evacuation of clean power.

The Deputy CM sought Central financial assistance for transmission upgrades under the Green Energy Corridor programme and disaster-resilient power infrastructure development.

DISCOMs turn profitable as losses decline

Deo highlighted a significant turnaround in the financial health of the state’s distribution companies (DISCOMs). "Importantly, Odisha’s DISCOMs have significantly improved financial health—reducing AT&C losses to 16.5 percent and posting a combined profit of Rs 1,243 crore in FY25. Our reforms are rooted in institutional resilience and long-term sustainability," he said on X.

Three of the state’s four DISCOMs received A+ ratings in the 12th and 13th Annual Integrated Ratings of Power Distribution Utilities, placing them among the top ten nationally.

Grid resilience, cybersecurity priorities

Odisha has implemented islanding schemes in cities like Bhubaneswar and Sambalpur to ensure uninterrupted power supply to critical services during grid failures. The state is also advancing cybersecurity measures across utilities, with ISO 27001 implementation, cyber crisis protocols, and real-time monitoring systems.

In closing, Deo reiterated the state’s appeal for central support across a wide range of energy initiatives, emphasising Odisha’s commitment to a “sustainable, secure, and citizen-centric power ecosystem” for homes, enterprises, and industries.

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