SDG 7: Affordable and Clean Energy | SDG 2: Zero Hunger | SDG 13: Climate Action
Institutions: Ministry of Finance | Ministry of Power | Ministry of New and Renewable Energy
The Asian Development Bank (ADB) has approved a $460 million results-based loan for Indiaβs Maharashtra state under the Maharashtra Power Distribution Enhancement Program for Agricultural Solarization. The program, complemented by an additional $40 million concessional loan from the Clean Technology Fund (CTF), aims to modernize rural power infrastructure and significantly boost agricultural productivity.
The core objective is to provide farmers with reliable daytime solar electricity for irrigation, a goal that directly aligns with the stateβs Power Sector Vision 2030. By 2028, the initiative seeks to provide daytime power to at least 900,000 agricultural consumers and reduce annual greenhouse gas emissions by over 3 million tons. Key components include modernizing 180 distribution substations, deploying 500 MWh of distributed battery storage systems (BESS), supporting 1,000 MW of decentralized solar generation, and training 5,000 individuals, including 1,500 women, in green jobs.
This program demonstrates a critical policy intersection between climate finance, energy transition, and agriculture, utilizing decentralized solar and storage solutions to strengthen the financial sustainability of the stateβs power distribution companies and enhance rural resilience.
What is a Battery Energy Storage System (BESS)?β A Battery Energy Storage System (BESS) is a technical mechanism used to store electrical energy from the grid or from renewable sources like solar. In the context of the Maharashtra program, distributed BESS units will store solar power generated during the day, enhancing grid stability, enabling better utilization of intermittent solar energy, and ensuring continuous, reliable power supply for irrigation and rural infrastructure.
Relevant Question for Policy Stakeholders: What institutional or regulatory changes are required to integrate the new solar-powered electricity supply with water resource management policies to prevent over-extraction of groundwater by subsidized farmers?
Follow the full news here: ADB Approves $460 Million Loan to Support Agricultural Solarization in India