The Asian Development Bank has signed an agreement with the Government of Madhya Pradesh to support the development of three renewable energy projects through public?private partnerships. The transaction advisory services agreement was signed in Bhopal by ADB Country Director for India Mio Oka in the presence of Madhya Pradesh Chief Minister Dr Mohan Yadav. The agreement is ADB's first transaction advisory services engagement in India and is expected to attract up to one billion US dollars (USD 1 bn) in private investment.

Under the agreement ADB will act as transaction advisor to assist the state in structuring, preparing and procuring the proposed projects. One key scheme will combine a solar power generation facility with battery energy storage at Shajapur to help meet peak electricity demand and improve grid stability. The work will include technical, commercial and financial structuring to render projects bankable for private investors.

The projects are expected to strengthen the state's power system by providing electricity during peak?demand periods and by improving reliability when solar generation is unavailable. Battery energy storage will play a central role in balancing renewable output and supporting a more flexible electricity grid. The initiative aligns with Madhya Pradesh's Renewable Energy Policy 2025, which targets meeting fifty per cent of the state's electricity demand through renewable energy by 2030.

ADB's advisory support will focus on developing bankable public?private partnership projects using international practices in project preparation, financial structuring and procurement, the bank indicated. The institution noted that public resources alone cannot meet India's growing energy requirements and that greater private sector participation will be essential. ADB has partnered with Madhya Pradesh for more than 25 years and the transaction advisory engagement is intended to strengthen renewable infrastructure while creating investment opportunities in the state.