Asian Development Bank to Support Renewable Energy Projects in Madhya Pradesh

The Asian Development Bank (ADB) has entered into an agreement with the Government of Madhya Pradesh to support the development of renewable energy public-private partnership (PPP) projects in the state, an initiative expected to attract up to USD 1 billion in private investment.

According to ADB, the pact marks the multilateral lender's first transaction advisory services (TAS) mandate in India. Under the agreement signed in Bhopal by ADB Country Director for India Mio Oka in the presence of Madhya Pradesh Chief Minister Mohan Yadav today, the development bank supports the structuring and rollout of three clean energy projects across the state.

Under the terms of the engagement, the multilateral institution serves as the transaction advisor for projects developed via the PPP mode. The pipeline includes a solar power generation and battery energy storage facility at Shajapur, planned to address the state's peak electricity requirements and enhance overall grid stability.

"Public resources alone cannot meet India's growing energy needs," stated Mio Oka, ADB Country Director for India, highlighting the structural gaps in clean infrastructure financing.

"Private capital exists, but markets need to be made investable," Oka added. "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."

The planned infrastructure aims to balance local distribution networks by supplying electricity during peak hours and maintaining supply reliability during intervals when solar generation remains offline. These developments align with the Madhya Pradesh Renewable Energy Policy 2025, a policy framework that sets out to expand state green energy and storage installations to meet 50 per cent of electricity demand from renewable resources by 2030.

The advisory engagement utilizes ADB's international transaction advisory track record in project preparation, structuring, and procurement across Asia and the Pacific to design commercially viable and bankable project tenders.

The regional development institution maintains an operational relationship with Madhya Pradesh spanning more than 25 years across various development priorities, including sustained capital investments in energy infrastructure.