Odisha has announced Renewable Energy Policy 2022 during the Make in Odisha Conclave 2022. The policy will remain active till 31 March 2030. The policy set the guidelines on the projects related to large hydro, small hydro, ground mounted solar, rooftop solar, floating solar, canal top solar, biomass, energy storage, waste-to-energy, green hydrogen, green ammonia or any other renewable energy technology and pilot projects to be commissioned in the state.
Following are the Highlights of the New Renewable Energy Policy.
Exemptions for Captive/Open Access Consumers
The state government is likely to extend a Rs 0.50 /kWh concession on electricity duty to captive and open access consumers of renewable energy and energy storage projects. This will be valid for 15 years from the date of commissioning of the project.
Also, 50% exemption will be applicable on the cross-subsidy surcharge and exemption of Rs 0.20 /kWh on state transmission utility (STU) charges will be available for 15 years from the date of the commissioning the project. If the project is commissioned before 31 March 2026, the STU exemption will be extended for additional five years, accounting to 20 years in total. The policy provides 25% reduction in wheeling charges for consuming energy from projects commissioned in the state for 15 years. The government will also provide land earmarked for the industry under the ‘Land Bank’ program and will be allotted for renewable energy projects.
Rooftop Solar
The Odisha Renewable Energy Development Agency (OREDA) will aggregate the demand from various government departments and make arrangement to install rooftop solar on government buildings. All the distribution companies in the state will procure the power at the tariff determined by the Odisha Electricity Regulatory Commission. The subsidies will be provided to rooftop consumers as per the guidelines of the Central or State government.
Distributed Solar
The policy will promote the solarisation of existing irrigation pumps under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program. Moreover, the government plans to deploy technologically advanced solutions like agri-PV to allow maximum land utilization by combining agricultural production with energy generation on the same land.
Floating Solar
The projects will be developed on build, own, and operate basis, (BOO) and the sites will be awarded for an initial period of 30 years and may be extended by five more years per the state government’s approval.
Solar-based EV Charging Stations
A nodal agency will propose appropriate mechanisms to avail solar power for electric vehicle (EV) charging under non-park solar and rooftop solar mechanisms. Solar installations for EV charging will be eligible for a 50% concession on land lease payment for the first 50 MW of installations during the policy period.
Wind
The wind projects in the state will be awarded on a first-come, first-serve basis. No windmills will be allowed to be set up within 1 km of any habitation having ten or more households. A nodal agency will allot identified sites to public and private sector units, with each entity getting a maximum of 50 MW capacity up to a cumulative total of 500 MW. Such a cap of 50 MW for an entity will not apply to state and central public sector units. OERC may determine a generic tariff for all wind projects allotted under the mechanism and commission before 31 March 2028.
Large Hydro
If the project is not awarded to any public sector units or their joint ventures, the nodal agency will conduct a competitive bidding process for selecting the developers to develop identified projects. GRIDCO will procure the power from the projects at the tariff determined by OERC. For projects planning to sell power outside the state, 12% of free power in addition to 1% local area development fund will be charged per the National Hydropower Policy.
Pumped Hydro
The pumped hydro projects will be eligible for viability gap funding from the Central or State governments as per the government’s decisions.
Small Hydro
The initial concession period for all projects will be for 40 years and may be extended by the government. At the end of the concession period, the projects will be transferred to the state government.
Biomass
The government will ensure feedstock availability, and wasteland will be made available at suitable locations for raising energy plantations to meet up to 20% of the annual biomass fuel requirement.
Green Hydrogen and Green Ammonia
The incentives and concessions will be in accordance with the national policy announced from time to time.
Banking
Banking facility will be allowed for open access and captive power projects within the state on a monthly basis. The drawal of banked energy will not be permitted during peak hours. OERC will determine the applicable banking charges.
Renewable Projects with Storage Systems
The DISCOMs and the Odisha Power Transmission Corporation will likely install battery energy storage systems to mitigate the challenges posed by the intermittent nature of power from renewable sources. The policy also aims to promote the deployment of mini and microgrids in remote areas with intermittent supply.
Renewable Purchase Obligation
The OERC will determine a trajectory for the renewable purchase and energy storage obligations until FY30 based on the order passed by the Ministry of Power.