UP and MP agree to jointly procure 2000 MW peak power

Uttar Pradesh and Madhya Pradesh have agreed to jointly procure 2,000 MW of peak power and develop a medium-term firm power banking mechanism, leveraging the contrasting seasonal electricity demand patterns of the two states

Uttar Pradesh and Madhya Pradesh have agreed to jointly procure 2,000 MW of peak power and develop a medium-term firm power banking mechanism, leveraging the contrasting seasonal electricity demand patterns of the two states.

An MoU to this effect was signed between the Uttar Pradesh Power Corporation Limited (UPPCL) and Madhya Pradesh Power Management Company Limited at Shakti Bhawan on Saturday.

The initiative, according to a UPPCL spokesman, is expected to create investment opportunities of around ₹10,000 crore in the power and renewable energy sectors.

While Madhya Pradesh witnesses higher power demand between October and March, particularly due to the rabi agricultural season, Uttar Pradesh faces greater demand pressure from April to September because of summer consumption and the kharif season.

The two states will now initiate a competitive procurement process for 2,000 MW of peak power. Officials said the arrangement would enable more efficient utilisation of available generation capacity, improve resource planning and potentially reduce power procurement costs.

The proposed power banking mechanism will allow surplus electricity available in one state to be utilised by the other during periods of higher demand. This, officials said, could reduce dependence on expensive short-term power purchases while strengthening grid flexibility and energy security.

The MoU was signed by GS Khanuja, chief general manager (non-conventional energy), MP Power Management Company, and Manish Dwivedi, chief engineer, UPPCL.