By Nageshwar Patnaik in Bhubaneswar, October 15, 2026: Odisha will need about Rs 1.1 trillion in investment over the next decade in renewable energy, storage and transmission to scale up clean power and build a more varied and resilient growth model, according to a report by the US-based Institute for Energy Economics and Financial Analysis (IEEFA).

Based on the Central Electricity Authority’s Resource Adequacy Report, IEEFA estimates the state must add 10.7 gigawatt (GW) of renewable capacity between 2025-26 and 2035-36, besides 2.7 GW of pumped storage, 0.13 GW of battery storage and intra-state transmission upgrades.

“The total estimated investment requirement is Rs 1, 09,980 crore, or nearly Rs 1.1 trillion. Renewable energy accounts for 67 per cent of this requirement, storage for 21 per cent and grid infrastructure for 12 per cent,” the report said.

Titled Sustainable Finance for a Just Transition in Odisha, the report noted that annual investment needs would vary with the timing of capacity additions, peaking at around Rs 20,827 crore in 2029-30.

Of Odisha’s estimated 139.5 GW solar potential, about 0.82 GW, less than 1 per cent, has been installed. It has 12.13 GW of wind potential but no grid-connected wind capacity yet, while hydropower stands at roughly 2.2 GW against a potential of 7.6 GW.

With adequate investment, the report said, Odisha could also supply more renewable power to other states.

Coal still dominates the state’s power system, and its finances remain closely tied to fossil fuels. In 2024-25, Odisha earned an estimated Rs 14,148 crore from coal and petroleum, or 13.1 per cent of its own tax and non-tax revenue, down from 16.2 per cent in 2022-23.

The report attributed the decline not only to growth in other revenue streams but also to stagnant fossil-fuel earnings and a steep fall in coal-related receipts. Fossil-fuel-linked sectors make up about a third of the state’s gross value added.