📋 Tender Overview
Project Name
Madhya Pradesh Renewable Energy Scaling Up Project
Project Number
56300-001
Country / Economy
India
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
Loan: Madhya Pradesh Renewable Energy Scaling Up Project
Ordinary capital resources US$ 70.00 million
Sector / Subsector
Energy / Electricity transmission and distribution
Gender
Effective gender mainstreaming
Description
In 2000, and underpinned by the Electricity Act 2003, the Madhya Pradesh state government initiated a series of major power sector reforms. The long-term objectives of these reforms were to make the sector financially sustainable, remove subsidies, reduce power theft, achieve full electrification, augment generation and network capacity, increase private sector participation, and move towards full retail competition. To deliver against the objectives, the former Madhya Pradesh State Electricity Board (MPSEB) was split into five wholly state-owned government companies: a generating company, a transmission company, and three distribution companies. A separate publicly owned company was subsequently incorporated to handle bulk power sales and purchases. Two public sector entities were later created under the state government's New and Renewable Energy Department specifically to develop renewable energy projects in Madhya Pradesh: (i) Madhya Pradesh Urja Vikas Nigam Limited, which is responsible for the development of small-scale renewable energy projects; and (ii) Rewa Ultra Mega Solar Limited (RUMSL) which is responsible for the development of large-scale renewable energy parks. The state electricity regulatory commission was established in 1998 and has issued tariff and other orders since 2004. The government has made good progress in achieving these objectives with the exception of financial sustainability in the distribution subsector. To address these residual challenges, the state is participating in the central government's Revamped Distribution Sector Scheme with the objective of improving the quality, reliability, and affordability of power supply to consumers and implementing various measures such as installing smart meters, asset mapping, energy accounting per feeder and have specific targets for loss reduction and revenue realization.
Project Rationale and Linkage to Country/Regional Strategy
Madhya Pradesh is the second largest state in India in terms of area and the fifth largest in terms of population. Madhya Pradesh has achieved an average growth rate of 12.4% (nominal) in gross state domestic product from 2020 to 2022, and in 2022, it ranked tenth in overall in the country. Agriculture, manufacturing, and services sectors contributed 35%, 25%, and 40%, respectively, of the economy.
Impact
Madhya Pradesh developed into a renewable energy hub with large scale adoption and deployment of renewable energy
Outcome
Renewable energy generation capacity increased
Outputs
Electricity transm
