MPPMCL, UPPCL sign MoU for 2,000 MW peak power procurement and banking
Madhya Pradesh Power Management Company Ltd (MPPMCL) and Uttar Pradesh Power Corporation Ltd (UPPCL) have signed a Memorandum of Understanding (MoU) to establish a framework for 2,000 MW of peak power procurement and medium-term power banking.
The arrangement is based on the contrasting seasonal electricity demand patterns of Madhya Pradesh and Uttar Pradesh. Madhya Pradesh records peak energy demand during the rabi season, from October to March, largely due to agricultural loads, while Uttar Pradesh sees peak demand during the kharif and summer months, from April to September.
The staggered demand cycles are expected to allow the two states to share generation capacity more efficiently through medium-term power banking. The arrangement is intended to reduce dependence on volatile and costly short-term power markets while improving resource adequacy planning and overall energy security.
Supported by consultants Mercados, the initiative is projected to attract approximately Rs 10,000 crore of investment into the power and renewable energy sectors.
Under the proposed framework, the states will immediately begin the procurement process for 2,000 MW of peak power capacity. The procurement will be carried out through a competitive bidding framework and will specifically focus on integrated solar and battery energy storage systems (BESS).
The combination of solar generation and BESS is intended to provide firm renewable power during peak demand periods and address the intermittency associated with renewable generation.
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