Odisha will require around Rs. 1.1 tn of investment in renewable energy, storage and power transmission over the next decade, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA). The investment is intended to support a more diversified and resilient growth model based on expanded clean-energy capacity.

The state needs to add 10.7 GW of renewable energy capacity between 2025-26 and 2035-36, according to the Resource Adequacy Report of the Central Electricity Authority (CEA). The additions will include 2.7 GW of pumped storage and 0.13 GW of battery storage, along with upgrades to intra-state transmission infrastructure.

Renewable energy will account for 67 per cent of the estimated investment requirement, while storage will represent 21 per cent and grid infrastructure 12 per cent. The requirement will vary according to the timing of capacity additions and is expected to peak at about Rs. 208.27 bn in 2029-30, the IEEFA report, titled Sustainable Finance for a Just Transition in Odisha, said.

Odisha has an estimated solar potential of 139.5 GW, but only about 0.82 GW has been installed, representing less than 1 per cent of the total. The state also has 12.13 GW of wind potential but no grid-connected wind capacity, while hydropower capacity stands at about 2.2 GW against estimated potential of 7.6 GW.

The report said investment in generation, storage and grid infrastructure could allow Odisha to supply more renewable electricity to other states. However, the state’s power system remains heavily dependent on coal, and fossil-fuel-linked sectors contribute about a third of its gross value added.

In 2024-25, Odisha received an estimated Rs. 141.48 bn from coal and petroleum resources, equal to 13.1 per cent of its own tax and non-tax revenue. The share was 16.2 per cent in 2022-23, with the decline reflecting stagnation in fossil-fuel revenues and a sharp fall in coal-related receipts.