The Asian Development Bank (ADB) has formalised an agreement with the Government of Madhya Pradesh to facilitate the development of renewable energy public-private partnership (PPP) projects within the state. This initiative aims to attract investments of up to USD 1 billion from private entities. The agreement, which represents ADB’s inaugural transaction advisory services (TAS) mandate in India, was signed on September 7, 2026, in Bhopal by ADB Country Director for India, Mio Oka, in the presence of Chief Minister Mohan Yadav.

The partnership is designed to provide the necessary support for the structuring and implementation of three clean energy projects throughout Madhya Pradesh. ADB will act as a transaction advisor for projects developed through the PPP model, focusing on ensuring that these initiatives are commercially viable and effectively meet the state’s energy needs.

One of the key components of this initiative will be the establishment of a solar power generation facility combined with a battery energy storage system located in Shajapur. This project is expected to specifically address the peak electricity demands within the state while enhancing overall grid stability.

Focus on Clean Energy Infrastructure

Mio Oka, during the agreement signing, emphasised that public resources alone are insufficient to meet India’s rising energy requirements. He noted the existing gaps in financing clean infrastructure, stating that while private capital is available, it must be made attractive for investment within the market. Oka added, “By assisting Madhya Pradesh in structuring bankable PPP projects, ADB aims to encourage private investment and create scalable models for clean energy infrastructure across the state.”

The efforts will enable local distribution networks to provide electricity during peak hours and ensure reliable supply when solar generation is not available. This approach supports Madhya Pradesh’s objectives as outlined in the Renewable Energy Policy 2025, which aims for renewable energy and storage installations to meet 50 per cent of the state’s electricity demand by 2030.

The engagement will leverage ADB’s extensive international experience in transaction advisory services across Asia and the Pacific to develop commercially feasible project tenders. This includes project preparation, structuring, and procurement aimed at ensuring long-term sustainability of energy infrastructure in mid-sized states like Madhya Pradesh.

Longstanding Relationship with Madhya Pradesh Government

ADB has sustained an operational partnership with the Government of Madhya Pradesh for over 25 years, addressing various developmental priorities, including investments in energy infrastructure. This ongoing collaboration reflects ADB’s commitment to support the state in achieving its renewable energy targets and enhancing energy security.

The introduction of this agreement signifies a crucial step towards fostering a conducive environment for private sector participation in clean energy projects. It also underscores ADB’s role in facilitating partnerships that can effectively mobilise substantial investments needed for the renewable energy transition in India.

As Madhya Pradesh moves forward with this vision, the collaboration with ADB is expected to not only attract investment but also serve as a model for similar initiatives across other states, highlighting the potential of public-private partnerships in addressing energy challenges.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share