Odisha needs 26,237MW of total contracted capacity to meet rising power demand by 2034: EY–ASSOCHAM report

Report outlines a roadmap for Odisha to become a low-carbon, investment-ready industrial powerhouse supporting India’s 500 GW non-fossil target by 2030 and net-zero vision for 2070.

• Demand growth requires 26,237¹  MW of total contracted capacity additions by 2033–34
• Port ecosystems at Paradeep, Dhamra and Gopalpur boost prospects for green hydrogen and ammonia exports.
• Industrial sector’s emission reduction potential is estimated at approximately 9 million tonnes of CO₂ equivalent by 2030.²

NEW DELHI, December 1, 2025 – Odisha is rapidly emerging as one of India’s most promising clean energy destinations, according to the EY–ASSOCHAM report titled “Odisha Energy Transition – Chariots of Change.” The report highlights that Odisha has strong natural advantages, progressive policies and growing industrial demand—all of which position it to become a major contributor to India’s green growth journey.

With significant solar, wind and hydro potential, a strong port ecosystem and clear policy direction, the report notes that Odisha can play a key role in supporting India’s clean energy targets for 2030 and its long-term net-zero vision. The report further explains that Odisha’s ports, its large industrial base and plans for energy storage and green hydrogen give it a unique opportunity to attract investment and become a green manufacturing hub for Eastern India.

Commenting on the report, Somesh Kumar, Partner and Leader, Power & Utilities, EY India said: “Odisha’s strong foundation for green industrialisation is anchored in its port-based ecosystem at Paradeep, Dhamra and Gopalpur, its substantial renewable energy potential, and progressive incentives for green infrastructure and captive generation. The state’s 34 GW of pumped storage potential positions it to lead India’s energy storage transformation, enabling 24x7 renewable power and enhancing grid stability. Targeted fiscal and regulatory measures such as electricity duty exemptions, tariff reimbursements, capital subsidies and SGST reimbursements are enabling industries to adopt clean technologies and lower their carbon footprint.”

Shri Pankaj Lochan Mohanty, Chairman, Odisha State Development Council, ASSOCHAM said, “Odisha is uniquely positioned at the intersection of industrial scale, renewable abundance and a world-class port ecosystem, giving it one of the strongest clean energy value propositions in India today. With advancing leadership in pumped storage, green hydrogen and low-carbon manufacturing, the state is poised to shape Eastern India into a globally competitive clean energy and green industrial hub. ASSOCHAM remains committed to accelerating this transition through strategic industry–government alignment and transformative partnerships.”

Key findings from the EY-ASSOCHAM report:

Hydrogen and ammonia export opportunities

• Odisha’s port ecosystem provides a competitive edge for exports to Japan, Korea and the EU.
• Several global companies are exploring green hydrogen/ammonia projects in the eastern coastal corridor.

Addressing energy demand and reliability

• Odisha’s electricity demand expected to reach 10,564 MW peak by FY 2033–34³.
• Requires 26,237 MW of total contracted capacity additions by 2033–34

Recommendations

• Government of Odisha (Industries Department, Energy Department), may constitute a strategic State Energy Planning & Transformation Unit. The unit’s mandate must include integrated planning for RE, PSP, hydrogen, ports, transmission, land-pooling and finance mobilization; coordination of various utility and renewable agency plans and a monthly monitoring dashboard shared with development partners.
• IPICOL and the Finance Department may issue standardized PPP procurement templates, for design-build finance-operate (DBFO) PSPs, energy parks and hydrogen hubs, that include risk allocation tables, revenue stacking frameworks (capacity payments, ancillary services, merchant sales) and dispute resolution
• mechanisms. These templates can accelerate competitive bidding and create predictable risk-return profiles.
• Government of Odisha (Finance Department), IPICOL and GRIDCO may create a state-level blended climate finance vehicle, combining concessional donor/ MDB capital with private co-investment, to underwrite first-loss for PSP, large-scale PSP + RE hybrid and hydrogen anchor projects.
• The Energy Department, OSDA and the Industries Department may co-design modular curricula for RE O&M, PSP operation, electrolysis plant operation, hydrogen safety and battery assembly. Implement a Just Transition Fund to finance reskilling of coal-sector workers and create apprenticeship pipelines linked to IPICOL’s industrial parks. This would enable workforce absorption and social legitimacy. It will also be equally important to develop the local workforce by institutionalizing the energy transition aspects into the curriculum of skill development organizations suitably.

The EY – ASSOCHAM report calls for a coordinated industry–government approach to scale renewable deployment, operationalize hydrogen hubs, accelerate storage projects, and enhance energy efficiency across industrial clusters such as Angul, Jharsuguda, and Rourkela.

It concludes that Odisha’s energy transition anchored in policy clarity, industrial commitment, and natural advantage can set a national benchmark for integrated, resilient and inclusive clean energy development, crucial for achieving India’s net-zero ambition by 2070.

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About ASSOCHAM

Aligned with the vision of creating a New India, ASSOCHAM works as a conduit between the industry and the Government. The Chamber is an agile and forward-looking institution, leading various initiatives to enhance the global competitiveness of the Indian industry, while strengthening the domestic ecosystem.