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Madhya Pradesh Bets on Renewables, Storage to End Subsidy Burden and Ensure Reliable Power

Madhya Pradesh (MP) Chief Minister Mohan Yadav has highlighted the state’s aggressive push towards renewable energy, with a vision to provide cheaper, reliable, and round-the-clock green power to farmers and households. The aim is to reduce the state’s annual energy subsidy burden of ?18,000 crore over the next three years and redirect savings towards developmental projects.

The state is focusing on solar, wind, and storage-based projects—including decentralised units—alongside conventional sources to meet rising demand. MP recently achieved a record-low tariff of ?2.70 per unit from a 600 MW solar-plus-880 MWh storage project at Morena. The facility will supply equal capacity during both daytime and non-solar peak hours, demonstrating that renewable energy combined with storage is now competitive with conventional thermal power.

Future projects will emphasize battery and pumped hydro storage to ensure 24x7 renewable supply at competitive rates, while also generating employment and regional development, especially in Morena and Chambal. Decentralised solar projects are also being promoted by encouraging companies to aggregate small land parcels near substations, reducing energy losses and optimising grid integration.

While renewables will form a major part of the mix, coal will continue to play a role due to existing reserves and rising demand. Additionally, the state is exploring nuclear opportunities, with projects like Chutka and potential future developments in Neemuch, aligning with India’s national goal of 100 GW nuclear capacity by 2047.

MP is also partnering with Uttar Pradesh in a joint renewable energy initiative, where power will be shared based on complementary demand cycles across the two states. With this multi-pronged approach—spanning solar, wind, storage, nuclear, and coal—Madhya Pradesh aims to position itself as a key growth engine in India’s energy transition while ensuring affordable and reliable power supply.