Odisha's Energy Transition: From Coal Powerhouse To Green Energy Leader

Odisha's energy sector is undergoing a transformational shift, driven by a bold vision to align with India's broader goals of sustainability, self-reliance, and climate resilience.

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As one of the country's coal-rich states—with nearly 25% of India's coal reserves—Odisha has long been central to the thermal power ecosystem. However, in recent years, it has significantly accelerated efforts to transition towards renewable energy (RE), institutional reforms, and sustainable industrial growth.

The early boom in India's renewable energy sector was dominated by western and southern states due to superior solar and wind potential and supportive central policies—particularly the waiver of Interstate Transmission System (ISTS) charges. Odisha, with medium-to-low RE potential, faced slow adoption. Recognizing this disparity, the state successfully advocated for the phased withdrawal of ISTS waivers by 2028 and alignment of Renewable Purchase Obligations (RPOs) for both discoms and captive power producers. This is crucial for Odisha, which hosts over 11,000 MW of captive thermal capacity now mandated to meet a 43% RPO target by 2030.