Written by: Salma Al-Saqqa
Odisha state is preparing to inject huge investments to develop the renewable energy sector, as estimates indicate the state needs about 1.1 trillion rupees over the next decade to support the transition to a low-carbon economy.
Expansion plans and renewable energy capacities
A report issued by a specialized foundation stated that these investments aim to support a more diverse and flexible growth model based on expanding clean energy capacities. According to official regulatory reports, the state needs to add 10.7 gigawatts of renewable energy capacity during the period from 2025-2026 until 2035-2036 to meet the growing demand for electricity.
Investment distribution and grid infrastructure
The expected additions include 2.7 gigawatts of pumped storage projects and 0.13 gigawatts of battery storage, in addition to the development and modernization of internal transmission grid infrastructure. Renewable energy projects will account for the largest share of total estimated investments, while storage and grid infrastructure will account for the remaining proportions, with expectations that financing needs will peak at the end of the current decade.
Potential and gradual transition
The state has huge potential in solar, wind, and hydroelectric energy, yet current installed capacities still represent a small fraction of the total available potential. Despite the state's potential to become a clean electricity exporter to neighboring states, the local energy system remains significantly dependent on coal and fossil fuel resources, which form an important part of the local administration's revenue.
