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Energy exchange runs dry as Uttar Pradesh faces multi-layered power challenge

Electricity not available on energy exchanges for purchase as entire country facing a historic demand this year, says UPPCL

Published on: May 26, 2026, 06:40:19 IST
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Uttar Pradesh is facing a multi-layered power challenge this summer as, apart from stress on the transmission and the distribution networks due to unprecedented demand amid intense heatwaves, the state is also grappling with a generation side shortfall because electricity is unavailable on the energy exchange for purchase to meet the peak requirement.

The state’s power demand touched the highest level of the current season on Sunday night at 31,804 megawatt. (REPRESENTATIVE IMAGE)
The state’s power demand touched the highest level of the current season on Sunday night at 31,804 megawatt. (REPRESENTATIVE IMAGE)

The state power utility has been placing bids on energy exchanges every day to procure additional electricity to bridge the demand-supply gap during peak hours in the late evening, but officials said it had not been able to purchase even a single unit in recent days because surplus power is simply not available in the market.

“Uttar Pradesh Power Corporation Limited (UPPCL) had traditionally relied on energy exchanges to manage peak demand during summer months. However, with almost all states witnessing exceptionally high demand simultaneously this year, the usual source of short-term procurement has become ineffective,” a senior UPPCL official said.

The state’s power demand touched the highest level of the current season on Sunday night at 31,804 megawatt, not only in Uttar Pradesh but also among the highest in the country, officials said. Demand is expected to rise further in the coming days as temperatures remain high.

The situation is expected to remain difficult until the onset of the monsoon in several parts of the country, which could reduce cooling demand and ease pressure on the power market.

“Every state currently requires power and therefore has very little or no surplus electricity to sell on the exchange,” the official said.

People familiar with the matter said whatever limited power was becoming available on the exchange was being sold at the ceiling rate of 10 per unit, reflecting the severe demand pressure.

Chief minister Yogi Adityanath, while reviewing the situation on Sunday, directed officials to procure as much power as required and said financial constraints should not come in the way of ensuring supply.

Officials, however, maintained that the challenge was no longer about money but availability.

They said bilateral arrangements under the banking system with several states had emerged as a major support mechanism and are helping Uttar Pradesh manage the situation. Under such arrangements, states supply electricity to each other and adjust the balance later.

Despite the peak deficit exceeding 2,000 mw, officials claimed that no additional load shedding was being undertaken and that supply was being managed through redistribution of load.

UPPCL managing director Nitish Kumar said it was true electricity was not available on the energy exchanges for purchase as the entire country was facing a historic demand this year.

“But we are still managing by redistributing the rural load and seni-rural load instead of resorting to any additional load shedding,” he claimed.

Sources, however, indicated that a part of the crisis was also translating into power shortages on the ground and resulting in undeclared outages in some areas.

As per the official data, on Sunday when the peak demand crossed 31,000 mw in the late evening, Uttar Pradesh was getting 10.573 mw as its share from the Central sector power plants, while the state sector generating stations contributed 16,664 mw, including 6,426 mw from the state-owned UPRVUNL plants, total being 27,237 mw.

 
ABOUT THE AUTHOR
Brajendra K Parashar

Brajendra K Parashar is a Senior Journalist with the Hindustan Times, based in Lucknow, with nearly three decades of experience covering governance, public policy, politics and development in Uttar Pradesh. Over the years, he has reported extensively on key sectors, including energy and renewable power, mobility and transport, road safety, agriculture and allied sectors and issues related to farmers, rural development, taxation under the Goods and Services Tax (GST) and public administration. A seasoned political correspondent, Parashar closely tracks the Bharatiya Janata Party (BJP) and has covered every major election in Uttar Pradesh right from three-tier panchayat elections and urban local body polls to Assembly and Lok Sabha elections. He also reports regularly on the proceedings of the Uttar Pradesh Legislature, bureaucracy, governance, policy decisions and administrative developments with focus on their impact on public life. His reporting is known for its strong analytical approach, extensive use of official data. His areas of interests include investigative journalism, long-form political and policy analysis, data-driven reporting, elections and institutional reforms. Parashar holds a postgraduate degree in Political Science with First Division from Aligarh Muslim University (AMU), followed by a Diploma in Journalism and Mass Communication from the same university. His inclination towards journalism began during his student days, when he regularly contributed letters to editors and articles to newspapers and magazines. In the mid-1990S, his essay, “Should India Switch Over to the Presidential Form Of Government?”, published in Politics India magazine edited by noted constitutional expert Subhash C Kashyap, was adjudged the best entry in a national competition. His work has received professional recognition, including the Hindustan Times Journalist of the Month Award for an impactful series on drinking water issues during the 2010 Lok Sabha election campaign. Originally from Kasganj in western Uttar Pradesh, Parashar is currently based in Lucknow where continues to report on politics, governance and public policy.

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