AI-Integrated Manufacturing Will Boost Quality and Reliability of Solar Products

India’s Renewable Energy Space is Mainstream Now for Lenders

Daily News Wrap-Up: Madhya Pradesh Invites Bids for 100 MW Solar Project

MNRE Revises Enlistment Norms for Wind Turbine Components

MNRE Releases ALMM List-II for Solar Cells with a Capacity of 13 GW

CESC Floats 40 MW/80 MWh Standalone BESS Tender in West Bengal

C&I Sector Finds Energy Storage More Favorable than Energy Banking

NTPC Green Floats O&M Tender for 250 MW Solar Project in Rajasthan

NTPC Green, Opera, Tata Win NHPC’s 500 MWh Standalone BESS Auction

Nextracker Acquires Robotics and AI Technologies to Expand Solar Platform

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/07/amazon_polly_82517.mp3?version=1753798693">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>Odisha’s <a href="https://energy.odisha.gov.in/" target="_blank" rel="noopener">Energy Department</a> has released the ‘Odisha Pumped Storage Projects (PSP) Policy’, identifying 45 potential PSP sites for implementation. Such PSPs will be considered state-identified sites.
Through this policy, the state aims to promote the development of pumped storage hydro projects and facilitate the smooth integration of renewable energy into the grid.
The Odisha government will issue operational guidelines in the next 15 days.
All state-identified projects will be allocated through the following route:
<ul>
<li>On nomination basis to Central Public Sector Undertakings (CPSU) or State Public Sector Undertakings (SPSU) after consideration of technical and financial capabilities to execute the projects. The prevailing regulations will guide the procurement of power by the Grid Corporation of Odisha (GRIDCO) or distribution companies (DISCOMs) from such projects</li>
<li>Through a competitive bidding process where bids must be invited based on revenue shared/unit of net energy sent out or any other parameter as decided by the nodal agency, subject to a threshold as decided by it</li>
<li>Through a tariff-based competitive bidding (TBCB) mechanism based on a composite tariff where the developer arranges input power or a tariff for storage on an MWh basis, where the procurer of the storage arranges the input power</li>
</ul>
Bidding Criteria
Unless a project is awarded on a nomination basis, the nodal agency or any other process coordinator nominated by the nodal agency will undertake a transparent, competitive bidding process to select the developer for the state-identified projects.
Where bids are not invited under the TBCB mechanism, they will be invited for revenue shared/unit of net energy sent out, or viability gap funding (VGF) required, or any other parameter as decided by the nodal agency.
The projects are eligible for VGF or any financial support from the central and/or state government. However, projects set up for captive consumption/third-party sale will not receive any VGF from the state government.
Self-Identified Off-Stream Projects
Private developers may, on their own, identify suitable sites for off-stream PSPs that are not registered as state-identified projects by the nodal agency.
The nodal agency will notify the date of the window opening for applications for the registration of self-identified off-stream PSPs from all developers, one month after the publication of the operational guidelines.
If multiple developers apply for the same project site, a competitive bidding process will be conducted. In this case, the revenue share for the energy sent out (in kWh) will serve as the basis for selecting a successful bidder. The base revenue share for competitive bidding will be ₹0.1 (~$0.0012) with an escalation of 10% once every five years.
CPSUs and SPSUs will also be allowed to self-identify off-stream PSPs and develop in the same manner as private sector developers.
The nodal agency will process all proposals, including captive PSP proposals, to ensure a uniform approach and single-window processing.
The application must be accompanied by a pre-feasibility report and a non-refundable one-time registration fee of ₹10,000 (~$115)/MW.
Among other details, the pre-feasibility report must include information such as the project location’s layouts and pictures, availability of upper and lower reservoirs, land area requirements, storage capacity of reservoirs, and the estimated potential of the PSP-hydro, including its MW capacity and power-to-energy ratio.
Once the application is approved, the site will be registered with suitable changes and conditions, if applicable. The developer must submit a performance guarantee of ₹200,000 (~$2,302)/MW with a starting validity of two years before the initial allocation.
Sale of Power
For the state-identified projects from which GRIDCO decides to procure the entire saleable power or capacity, the tariff must be determined by the Odisha Electricity Regulatory Commission (OERC), unless the project is awarded through TBCB.
Where a project is awarded on a nomination basis to CPSUs/SPSUs/joint ventures or allotted through competitive bidding (excluding TBCB), the state will have the right of first refusal for up to 80% of the project capacity. The commission will fix the tariff.
For self-identified projects, the state will have the right of first refusal of up to 50% of the project capacity. GRIDCO will be offered 80% of the power generated during the monsoon period (June to September) at the secondary energy rate determined by the Central Electricity Regulatory Commission (CERC) or OERC, when PSPs operate as conventional hydro projects.
If the contracting agency is not fully utilizing the contracted capacity, the developer must transfer the unused capacity to other interested entities, ensuring that resources are not left idle.
This provision of transfer will not apply to captive PSPs. However, such idle capacity can be offered to GRIDCO at a tariff determined by the CERC/OERC.
Incentives
According to the policy, PSPs will be exempt from paying electricity duty and cross-subsidy surcharge on input energy, regardless of the energy source location.
Since water used in PSPs is for non-consumptive purposes, no water cess will be levied on PSPs for either the initial filling of water or the annual refilling of the requisite volume of water allocated by the state’s Water Resources Department. However, the projects will attract water charges.
The developer may be eligible for budgetary support towards the cost of enabling infrastructure from the Ministry of Power, subject to the eligibility criteria.
To reduce costs and enhance PSPs&#8217; acceptance as an energy transition mode, the state government may introduce a program applicable to such projects or energy procured by GRIDCO for DISCOMs.
All projects must be developed in the build-own-operate-transfer model.
The concession period must be 40 years and may be extended by up to 30 additional years, in line with the prevailing rules and regulations, and subject to the state government’s approval.
The projects must be transferred to the state government at the end of the concession period.
Last year, the Ministry of Power <a href="https://www.mercomindia.com/pumped-storage-projects-to-receive-up-to-%E2%82%B920-million-mw-budgetary-support" target="_blank" rel="noopener">modified</a> the provision of budgetary support for hydroelectric and PSP, with a total outlay of ₹124.6 billion (~$1.48 billion). The Ministry will support projects of a cumulative hydroelectric capacity of 31 GW, including 15 GW of PSP capacity from the financial year 2024-25 to 2031-32.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

Odisha Identifies 45 Pumped Storage Project Sites, to Issue Guidelines Soon

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/07/amazon_polly_81612.mp3?version=1751895728">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>The Odisha government aims to meet 33% of its power needs from renewable energy sources by 2036 and 50% by 2047, according to Odisha Vision 2036 and 2047 report released recently.
Odisha has attracted over ₹5 trillion (~$58 billion) in investments across the manufacturing sector, with 14% of the investment going towards green energy equipment and 8% towards electric vehicles and component manufacturing.
The state has outlined several renewable energy goals in the report.
Renewable Energy Goals 
To address the rising clean energy demand, Odisha plans to add 21,000 MW of generation capacity by 2047, with over 70% to 75% of this capacity coming from renewable energy sources, including solar, wind, round-the-clock renewables, and advanced storage solutions.
The state’s current installed renewable energy capacity is 10% of the total installed capacity. Odisha aims to generate 55% of the state&#8217;s total energy from renewable sources.
To achieve this goal, the state plans to mobilize between ₹1.8 trillion (~$21 billion) and ₹2 trillion (~$23 billion) through tailored incentives and policies. It will organize energy-themed roadshows focusing on new technologies such as floating solar, small modular reactors for nuclear power, and energy storage.
Odisha aims to establish a ‘State Green Energy Transition Fund’ to provide initial investments for the energy transition. It also plans to establish a task force to expedite the development of 7 GW of pumped storage projects.
The state aims to be among the top five energy-exporting states by 2047, supplying power to southern and eastern India. It targets achieving at least 33% green power consumption in industrial sectors, while maintaining competitive tariffs to attract investment.
The vision document says Odisha will work towards enabling green industries through 3–5 MMTPA green hydrogen production capacity. These industries will include green steel and aluminum production.
The state government said the new investment opportunities will help it generate 75,000 new jobs in renewable energy.
According to the report, Odisha is also planning to achieve a near 80% electric vehicle and alternative fuel vehicles sales penetration in road transport by 2047. The sales penetration is currently at approximately 7%.
The state government said that Odisha’s 11% share of the nation’s water resources underpins a vast 36 GW potential for pumped storage projects, with 1.7 GW already under development.
The state plans to tap into its floating solar energy potential, estimated at between 17 GW and 18 GW, supported by its extensive surface water resources. It targets enabling 50% of end-use electricity consumption in agriculture and urban households to be powered by solar energy by 2036.
Last year, the Odisha Government <a href="https://www.mercomindia.com/odisha-approves-renewable-energy-billion" target="_blank" rel="noopener">approved</a> two major projects in the renewable energy sector, with a combined investment of ₹4.11 billion (~$49.1 million). These projects were approved at the 130th meeting of the State Level Single Window Clearance Authority.

Odisha to Meet 50% Power Needs from Renewable Sources by 2047

psps

Get the most relevant India solar and clean energy news.

RECENT POSTS