Madhya Pradesh, Uttar Pradesh partner to develop 8 Gw solar power plants

Madhya Pradesh (MP) and Uttar Pradesh (UP) are partnering to develop 8 gigawatts (Gw) of solar power plants — a first-of-its-kind initiative in India through which two states are co-developing RE projects to share power.

These projects would supply power to each state during high demand seasons, alternating every six months. Senior officials involved in the plan told Business Standard that the two neighbouring states have contrasting power demand patterns. 

MP’s peak demand period stretches from October to March, aligning with the rabi crop season, while UP’s demand surges between April and September, a duration that includes the kharif crop season. The solar power generated would be distributed based on these patterns.

Kharif crops are typically sown in UP between July and October, while rabi crops are cultivated in MP from November to March, explaining the contrasting demand curves for electricity.

“The plan is for each state to procure power from the plants for six months a year,” said Manu Srivastava, additional chief secretary of MP’s energy department, on the sidelines of the recently held RE-Invest summit in Gujarat’s Gandhinagar. “In the first phase, we are planning to develop a 2 Gw project, and Morena (Madhya Pradesh) has been identified as a possible site. Bids will be called in the next four months and the project should commence in another 12 months.”

Srivastava revealed that the solar plant will supply power to UP during the first two quarters of a financial year and to MP during the latter half. Tariffs will remain consistent, determined through competitive bidding.

For the Morena project, the official mentioned that the intent is to award the full capacity to a single bidder. The 2 Gw of capacity will be integrated into the interstate transmission system (ISTS) or the national grid. Industry metrics suggest the project could cost around Rs 10,000 crore, though Srivastava declined to comment on this matter.

The remaining solar power capacity will be developed in both states, with the possibility of creating a solar park system also under consideration. Srivastava, known for his pivotal role in India's first solar park, the Rewa Ultra Mega Solar (RUMS) project -- which currently supplies to a variety of consumers, including Delhi Metro and Indian Railways – said discussions are ongoing around this plan.

A solar park hosts projects of different capacities by multiple developers and connects those to a shared power evacuation infrastructure. Land and grid connectivity through the ISTS is provided by the host state.

According to the monthly demand pattern analysis by Grid India, the national grid operator, MP’s peak demand typically falls between December and March, reaching between 10 Gw and 12 Gw. UP, on the other hand, experienced its highest demand this year during the summer months of May and June -- of 28 Gw.

Both states have set ambitious renewable energy capacity goals. MP targets 20 Gw of RE capacity by 2030, up from its current 9 Gw, while UP aims for 22 Gw of solar capacity by 2026-27, from its existing 6.8 Gw.