Three clean-energy projects are being developed by Madhya Pradesh and the Asian Development Bank through PPPs. A Shajapur solar and BESS project will support peak demand and grid stability. The initiative could attract up to $1 billion in private investment, with ADB providing transaction advisory services for project structuring and procurement.
SNAPSHOT
Developer / Government: Government of Madhya Pradesh
Advisor: Asian Development Bank (ADB)
Project model: Public-private partnership
Projects: Three clean-energy projects
BESS project: Solar power generation + BESS
Location: Shajapur, Madhya Pradesh, India
Use case: Peak electricity demand, grid stability
Storage role: Supply solar electricity during peak periods and non-solar hours
Investment potential: Up to $1 billion in private investment
Policy: Madhya Pradesh Renewable Energy Policy 2025
Renewable target: 50% of electricity demand from renewable sources by 2030
ADB role: Transaction advisory, project preparation, structuring and procurement
Source date: September 9, 2026
Madhya Pradesh is working with the Asian Development Bank (ADB) to develop three clean-energy projects through the public-private partnership model. The initiative is expected to attract up to $1 billion in private investment. ADB will provide transaction advisory services for project development, structuring, and rollout, supporting the state in preparing commercially viable projects for private-sector participation.
One project planned under the initiative combines solar power generation with battery energy storage at Shajapur. The facility is intended to help meet Madhya Pradesh’s peak electricity requirements while supporting grid stability. The battery system will allow solar-generated electricity to be supplied during peak-demand periods and when solar generation is unavailable.
The planned storage facility is also intended to support local distribution networks by improving electricity supply reliability and balancing power availability across different periods of the day. The combination of solar generation and storage is being structured as part of the project rather than as a standalone storage installation.
ADB will support Madhya Pradesh in preparing, structuring, and taking the projects through procurement. Its transaction advisory role is intended to develop bankable project tenders that can attract private sector participation. The engagement is ADB’s first transaction advisory services mandate in India, according to the report.
The three projects are being developed in line with the Madhya Pradesh Renewable Energy Policy 2025. The policy targets renewable resources, meeting 50% of the state’s electricity demand by 2030. The wider initiative is expected to mobilise up to $1 billion in private investment for clean-energy infrastructure, while the Shajapur project combines renewable generation with storage for peak-demand management and grid stability.