ADB backs $1b Madhya Pradesh clean energy projects

Projects aim to improve peak-hour power supply and grid stability.

The Asian Development Bank (ADB) has signed an agreement with the Government of Madhya Pradesh to support three renewable energy projects, its first transaction advisory services engagement in India.

Under the agreement, signed in Bhopal by ADB Country Director for India Mio Oka, ADB will advise on projects to be developed through public-private partnerships (PPP).

The projects are expected to attract up to $1b in private investment.

One of the projects involves a solar power generation and battery energy storage facility in Shajapur, designed to meet peak electricity demand and strengthen grid stability.

The projects are expected to improve power reliability during peak hours and periods when solar generation is unavailable. They support Madhya Pradesh’s Renewable Energy Policy 2025, which targets renewable energy and storage capacity sufficient to meet 50% of the state’s electricity demand by 2030.

ADB has partnered with Madhya Pradesh for more than 25 years across sectors, including energy infrastructure.

"Public resources alone cannot meet India's growing energy needs. Private capital exists, but markets need to be made investable," said Oka. "By helping Madhya Pradesh to structure bankable PPP projects, ADB is helping to crowd in private investment, demonstrate what works, and create scalable models for clean energy infrastructure across the state."