Bhubaneswar, Sep 19 (IANS) The Odisha government has launched the Pumped Storage Project (PSP) policy to fast-track energy storage infrastructure and enable smoother integration of renewables into the grid, said the Energy department on Thursday.

The department in an official statement released on Thursday asserted that PSPs are emerging as a vital enabler of India’s energy transition. It further added that by storing surplus energy during off-peak hours and releasing it during peak demand or low renewable availability, PSPs offer cost-effective, long-duration grid-scale storage.

“GRIDCO shall be the nodal agency, for allocation of both self-identified and state-identified project sites. 45 numbers of potential PSP sites identified by the state have been published on the official web portal of GRIDCO. Operational guidelines for the implementation of the PSP policy have been notified on September 17, 2025,” informed the department.

According to the official statement, all projects will follow the Build-Own-Operate-Transfer (BOOT) model with a 40-year concession period, extendable by 30 years. Post-concession projects will be transferred to the State Government, except captive PSPs which retain CGP status.

Deputy Chief Minister and Energy Minister Kanak Vardhan Singh Deo called the policy a vital step toward grid stability and Net Zero goals. He said that with streamlined execution and faster approvals, Odisha is set to scale up PSP capacity rapidly.

PSPs in Odisha enjoy all benefits under Odisha Renewable Energy Policy 2022 (OREP-22), along with key exemptions such as no electricity duty or cross-subsidy surcharge on input energy, no water cess for non-consumptive use, and no obligations for free power or LADF contributions.

The Energy department also informed that the developers of PSPs are eligible for central budgetary support, full Renewal Energy incentives if energy input is sourced from in-state renewables and face no penalty for sourcing from outside Odisha.

Projects availing IPR incentives cannot claim benefits under this policy or OREP-22.

“With its PSP Policy, Odisha is laying the groundwork for a resilient, renewable-powered future. This marks a decisive step toward sustainable growth and climate-conscious development,” added Deputy CM Singh Deo.

–IANS

gyan/pgh