Odisha to Add 26 GW Capacity by 2034 as Clean Energy Demand Surges: Report

Odisha is poised to become one of India’s most significant clean energy hubs, according to a new EY–ASSOCHAM report titled “Odisha Energy Transition – Chariots of Change.” The study highlights the state’s rapid industrial growth, strong renewable energy potential, and robust port infrastructure, positioning it as a key driver of India’s green transition and long-term net-zero targets.

The report estimates that Odisha will require 26,237 MW of additional contracted power capacity by FY 2033–34 to meet an expected peak electricity demand of 10,564 MW. Rising industrial consumption, especially in metals, mining and manufacturing, underpins this sharp demand outlook.

A key focus of the report is the state’s strategic advantage in developing green hydrogen and ammonia. With major ports at Paradeep, Dhamra and Gopalpur, Odisha is well placed to serve export markets such as Japan, South Korea and the European Union. Several international companies are already exploring project opportunities along the state’s eastern coastal corridor.

EY notes that Odisha’s 34 GW pumped storage potential could make it a national leader in energy storage, enabling round-the-clock renewable power and strengthening grid reliability. The state’s policy framework—featuring tariff reimbursements, electricity duty exemptions, SGST reimbursements and capital subsidies—has further encouraged industries to shift to cleaner technologies.

Somesh Kumar, Partner and Leader for Power & Utilities at EY India, said the state’s renewable resources and progressive policy incentives create a “strong foundation for green industrialisation.” He emphasized the importance of pumped storage in enabling large-scale renewable integration.

ASSOCHAM Odisha State Development Council Chairman Pankaj Lochan Mohanty added that Odisha’s mix of industrial scale, renewable abundance and port strength gives it “one of the strongest clean energy value propositions in India.”

The report also recommends setting up a State Energy Planning & Transformation Unit to coordinate renewable energy, hydrogen, port, transmission and land-pooling plans. It proposes standardized PPP templates for pumped storage and hydrogen hub development, and calls for a blended climate finance vehicle to support large-scale clean energy projects. Additionally, it highlights the need for workforce development through curricula focused on renewable operations, hydrogen safety and storage technologies, alongside a Just Transition Fund for reskilling coal-sector workers.

The report concludes that with policy clarity, industrial commitment and natural advantages, Odisha can become a benchmark for integrated and inclusive clean energy development, contributing significantly to India’s 2070 net-zero goal.