Odisha Needs 26,237 MW Capacity to Meet 2034 Power Demand: EY–ASSOCHAM
Odisha will need 26,237 MW contracted power capacity by 2033–34 to meet rising demand, as per a new EY–ASSOCHAM report. The study outlines a pathway for the state to become a low-carbon, investment-ready industrial hub, supported by opportunities in green hydrogen and ammonia exports and an estimated 9 million tonnes CO₂e reduction potential by 2030.
December 01, 2025. By News Bureau
With significant solar, wind and hydro potential, a strong port ecosystem and clear policy direction, the report notes that Odisha can play a key role in supporting India’s clean energy targets for 2030 and its long-term net-zero vision. The report further explains that Odisha’s ports, its large industrial base and plans for energy storage and green hydrogen give it a unique opportunity to attract investment and become a green manufacturing hub for Eastern India.
Commenting on the report, Somesh Kumar, Partner and Leader, Power and Utilities, EY India, said, “Odisha’s strong foundation for green industrialisation is anchored in its port-based ecosystem at Paradeep, Dhamra and Gopalpur, its substantial renewable energy potential, and progressive incentives for green infrastructure and captive generation. The state’s 34 GW of pumped storage potential positions it to lead India’s energy storage transformation, enabling 24x7 renewable power and enhancing grid stability. Targeted fiscal and regulatory measures such as electricity duty exemptions, tariff reimbursements, capital subsidies and SGST reimbursements are enabling industries to adopt clean technologies and lower their carbon footprint.”
Pankaj Lochan Mohanty, Chairman, Odisha State Development Council, ASSOCHAM, said, “Odisha is uniquely positioned at the intersection of industrial scale, renewable abundance and a world-class port ecosystem, giving it one of the strongest clean energy value propositions in India today. With advancing leadership in pumped storage, green hydrogen and low-carbon manufacturing, the state is poised to shape Eastern India into a globally competitive clean energy and green industrial hub. ASSOCHAM remains committed to accelerating this transition through strategic industry–government alignment and transformative partnerships.”
The EY–ASSOCHAM report highlights Odisha’s strong potential for green hydrogen and ammonia exports, supported by a strategically positioned port ecosystem that offers a competitive advantage in supplying markets such as Japan, Korea and the EU. Several global players are already exploring large-scale green fuel projects along the state’s eastern coastal corridor.
The report also underscores the need to address rising energy demand, with Odisha’s electricity peak load projected to reach 10,564 MW by FY 2033–34, requiring a substantial 26,237 MW of total contracted capacity additions to ensure reliability and meet future industrial growth.
The report recommends that the Government of Odisha establish a State Energy Planning and Transformation Unit to drive integrated planning across renewable energy, pumped storage, hydrogen, ports, transmission, land pooling and finance, while coordinating utility-level plans and maintaining a monthly progress dashboard. It also urges IPICOL and the Finance Department to introduce standardized PPP procurement templates for DBFO-based pumped storage projects, energy parks and hydrogen hubs, incorporating clear risk allocation, revenue stacking models and dispute-resolution mechanisms to streamline competitive bidding and improve investor confidence.
To mobilise capital, the report suggests creating a state-level blended climate finance vehicle that brings together concessional donor or MDB funding with private co-investment to provide first-loss support for large-scale PSP, hybrid RE-PSP and hydrogen projects. Additionally, it highlights the need for coordinated skill development, recommending that the Energy Department, OSDA and Industries Department jointly design modular training curricula for RE O&M, PSP operations, electrolysis, hydrogen safety and battery assembly.
It further advises establishing a Just Transition Fund to reskill coal-sector workers and build apprenticeship pathways linked to IPICOL’s industrial parks, while ensuring wider integration of energy-transition skills into institutional training programmes. Overall, the EY–ASSOCHAM report emphasises a collaborative industry–government strategy to expand renewable energy, enable hydrogen hubs, accelerate storage capacity and boost energy efficiency across key industrial clusters like Angul, Jharsuguda and Rourkela.
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