MP And UP Ink MoU For Power Procurement

Madhya Pradesh and Uttar Pradesh, both BJP-ruled states, signed an agreement to procure and share power based on their complementary seasonal demand patterns and explore medium-term power banking arrangements, an official said on Saturday.

The Memorandum of Understanding (MoU) was signed on Friday in Lucknow between Madhya Pradesh Power Management Company Limited (MPPMCL) and Uttar Pradesh Power Corporation Limited (UPPCL), senior public relations officer of MPPMCL, Pankaj Swamy, told PTI over phone.

The agreement was signed in the presence of Madhya Pradesh Energy Secretary Vishesh Garpale and Uttar Pradesh Power Corporation Limited Chairman Ashish Kumar Goyal, he added.

Under the arrangement, Madhya Pradesh faces peak electricity demand during the rabi season from October to March, mainly due to agricultural consumption, while Uttar Pradesh's demand peaks during the kharif and summer months from April to September, Swamy said.

The differing demand patterns allow the two states to share generation capacity more efficiently and reduce power procurement costs, he added.

As part of the initiative, the two states agreed to begin the process of procuring 2,000 MW of integrated solar and battery energy storage system capacity through a competitive framework.

The arrangement is expected to facilitate efficient sharing of power resources, improve asset utilisation, and support long-term resource adequacy planning, Swamy said.

The proposed initiative is expected to attract investments of around Rs 10,000 crore in the power and renewable energy sectors, creating opportunities for infrastructure development and employment generation, according to the official.

The two states also agreed to explore a medium-term firm power banking arrangement aimed at optimising resource utilisation, enhancing grid flexibility and energy security, and reducing dependence on costly short-term power purchases.

The MoU was signed by MPPMCL Chief General Manager (Non-Conventional Energy) G S Khanooja and UPPCL Director (Planning) Deepak Raizada, Swamy said.