Uttar Pradesh (UP) is eyeing fresh investments of ₹10,000 crore in the power and renewable energy value chain, with the state expecting peak energy demand to reach 50,000 megawatt (Mw) by 2034.
The Uttar Pradesh Power Corporation Limited (UPPCL) and the Madhya Pradesh Power Management Company Limited (MPPMCL) have signed a Memorandum of Understanding (MoU) in Lucknow to jointly procure 2,000 Mw of peak power and develop ‘power banking’, a cashless arrangement under which two states or power utilities trade electricity to match seasonal highs and lows in demand.
According to UPPCL, the initiative “will accelerate the expansion of power infrastructure, generate new employment opportunities and promote clean energy.”
Addressing the CII Uttar Pradesh Clean Energy Summit 2026, Additional Chief Secretary (Energy) Ashish Kumar Goel highlighted the rapid growth in energy demand driven by Artificial Intelligence and data centres, electric mobility, air conditioning and economic growth.
Goel emphasised that renewable energy must be supported by storage, grid management and balancing solutions to ensure round-the-clock power.
According to Central Electricity Authority (CEA) estimates, peak power demand in UP is expected to surge by more than 40 per cent to 47.6 gigawatt (Gw) in 2031-32, from 33.9 Gw in 2026-27.
“UP can deliver 24×7 power by procuring a diversified portfolio of solar, wind, FDRE (Firm and Dispatchable Renewable Energy), and storage under competitively discovered long-term contracts,” said Vineet Mittal, chairman of Avaada Group.
The MoU is based on the complementary seasonal power demand patterns of the two states. In Madhya Pradesh, power demand is higher from October to March during the Rabi sowing season, while UP witnesses peak demand from April to September during the Kharif sowing season.
By leveraging this variation in peak power demand patterns, the available power generation capacity can be utilised more effectively.
This will not only ensure better utilisation of resources but also help reduce the overall cost of power procurement and offer cheaper power to consumers.
