The Asian Development Bank (ADB) has approved a $460 million results-based loan designed to modernize rural power infrastructure and boost distributed renewable energy generation across Maharashtra. The initiative, is complemented by an additional $40 million concessional loan from the Clean Technology Fund (CTF). It aligns with the state’s Power Sector Vision 2030, with a key objective of strengthening energy access and the financial stability of the power sector.
Core infrastructure modernization:
The key components of the program focus on modernizing the distribution network to ensure it is “renewable-energy-ready” and providing viability gap funding (VGF) to support 1,000 megawatts (MW) of decentralized solar generation capacity.
Grid modernization efforts are extensive, involving the upgrade of 180 distribution substations and the installation of 4,500 new distribution transformers. Additionally, the plan includes developing 3,000 circuit kilometers of high-tension and 1,200 circuit kilometers of low-tension lines, alongside the deployment of 500 MWh of distributed battery storage.
Operational digitization will also be advanced through the use of agriculture solarization dashboards and modern monitoring solutions covering at least 2,500 substations.
Scope:
The program, formally known as the Maharashtra Power Distribution Enhancement Program for Agricultural Solarization, seeks to accelerate renewable energy adoption and improve agricultural productivity. By solarizing agricultural feeders, the plan intends to provide farmers with reliable daytime electricity for irrigation.
The ADB anticipates that this investment will result in lower power purchase costs and distribution losses, while also reducing transformer failure rates by 25%. The program aims to enhance the overall financial sustainability of the power sector.
Emissions reduction and community impact:
The program is set to deliver significant environmental and social benefits. By 2028, the initiative aims to provide daytime electricity access to at least 900,000 agricultural consumers and reduce annual greenhouse gas emissions by over 3 million tons.
Mio Oka, Country Director, India, ADB, emphasized the importance of the cross-sectoral nature of the funding. Oka said that the program builds on ADB’s longstanding partnership with Maharashtra in advancing cross-sectoral interventions that integrate renewable energy solutions to strengthen both the agriculture and energy sectors. She said that it will transform the rural energy landscape through decentralized solar solutions, improved grid reliability, and empowered communities—especially women—through green livelihoods.
The initiative also includes a green skilling component, training 5,000 individuals—including 1,500 women—to create opportunities for green livelihoods and entrepreneurship.
