Bhubaneswar, 19 September (IANS) Odisha Government on Thursday said the Department of Energy said that the Odisha government has introduced a pump storage project (PSP) policy to fast-track the infrastructure of energy storage and enable renewable integration in the grid.
In an official statement released on Thursday, the department claimed that PSPs are emerging as an important environment of India’s energy infection. It further stated that by storing surplus energy during off-pak and releasing it during peak demand or low renewable availability, PSP offers cost-effective, long-term grid-scale storage.
“Gridco will be the nodal agency, for the allocation of both self-help and state-wandering projects. 45 numbers of potential PSP sites identified by the state have been published on the official web portal of Gridco. The operational guidelines for implementation of PSP policy have been noted on September 17, 2025.
According to the official statement, all projects will follow the build-on-operate-transfer (boot) model with a 40-year concession period, which is expandable for 30 years. Post-conflicting projects will be transferred to the state government, except the captive PSP, which maintains the position of CGP.
Deputy Chief Minister and Energy Minister Kanak Vardhan Singh Dev called the policy an important step towards grid stability and pure zero goals. He said that with streamlined execution and rapid approval, Odisha is ready to rapidly increase PSP capacity.
PSP in Odisha enjoys all benefits under the Odisha Renewable Energy Policy 2022 (OREP-22), as well as no power duty or cross-subsidy overload on input energy, no water cost for non-compliant use, and no obligation for free power or LADF contribution.
The Department of Energy also stated that PSP developers are eligible for central budgetary support, full renewal energy encouragement, if the energy input is sourced by the state renewal and no fine for sourcing from outside Odisha.
Projects taking advantage of IPR incentive cannot claim profit under this policy or Orep-22.
“With its PSP policy, Odisha is doing ground work for a flexible, renewable-manual future. It is a decisive step towards permanent development and climate-conscious development,” said Deputy CM Singh DO.
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