Odisha Cabinet Extends Duty Exemptions for RE Net Metering and Standalone BESS Projects
Odisha Cabinet has extended an INR 0.50 /unit electricity duty exemption for eligible net-metering consumers using RE power and an INR 0.20 /unit STU charge exemption for standalone BESS, while removing the 500 MW wind-project cap and introducing provisions for wind parks and captive RE projects under OREP 2022.
August 18, 2026. By Mrinmoy Dey
Key changes include the extension of an INR 0.50/unit electricity duty exemption for eligible net-metering consumers using power from renewable energy projects established in Odisha. The exemption will be available for 10 years from the date of commissioning.
The Cabinet has also extended the INR 0.20/unit State Transmission Utility (STU) charge exemption for standalone Battery Energy Storage Systems (BESS) commissioned in Odisha. The benefit will apply subject to the condition that input energy is sourced from renewable energy projects, and the stored power is used to meet the state's demand.
For wind energy, the government has removed the existing 500 MW cumulative capacity cap for allocation of wind power projects under the first-come-first-served mechanism. The amended policy will also promote Wind Power Parks to facilitate large-scale wind energy development across the state.
The amendments introduce a Right of First Refusal (RoFR) of up to 25 percent of the capacity for renewable energy captive projects. The government has also provided for harmonisation of operational guidelines to improve efficiency and streamline the implementation of renewable energy projects.
In another measure, GRIDCO has been designated as the Nodal Agency for implementation of legacy Small Hydro Electric Power (SHEP) projects.
The policy amendments are expected to strengthen Odisha's renewable energy ecosystem by improving project economics, facilitating larger wind and storage projects, and creating a more streamlined framework for clean energy investments.
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