Odisha Needs ₹1.1 Lakh Crore for Clean Energy Transition: IEEFA

Bhubaneswar, October 16: Odisha will require an estimated ₹1,09,980 crore over the next decade to accelerate its transition to clean energy, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA).

The report, titled Sustainable Finance for a Just Transition in Odisha, estimates that between FY2025-26 and FY2035-36, the state will need to add 10.7 GW of renewable energy capacity, 2.7 GW of pumped-storage capacity and 0.13 GW of battery storage. The investment will be allocated across renewable energy (67%), energy storage (21%) and transmission infrastructure (12%). Annual funding requirements are expected to peak at ₹20,827 crore in FY2029-30.

Odisha has significant untapped renewable resources, including 139.5 GW of solar potential, 12.13 GW of wind potential and 7.6 GW of hydropower potential. However, installed solar capacity stands at just 0.82 GW, grid-connected wind power remains absent, and hydropower capacity is around 2.2 GW.

The report also highlights Odisha’s continued dependence on coal and petroleum, which generated ₹14,148 crore, or 13.1% of the state’s own revenue, in FY2024-25.

To fund the transition, IEEFA recommends assessing costs across sectors, establishing a sustainable finance framework and creating a dedicated transition fund combining government, private, climate and multilateral funding.

The proposed transition also covers green hydrogen, electric mobility, industrial decarbonisation, energy-efficient buildings, worker retraining, mine closure, land restoration and economic diversification in coal-dependent regions. The report says concessional and blended finance will be crucial to making the shift economically viable and socially inclusive.