In India, the Uttar Pradesh government has signed a 600 MW one-year power purchase agreement (PPA) with the Gujarat government and private utility Adani Power. This will help Uttar Pradesh close its power shortage.

According to the Central Electricity Authority, Uttar Pradesh had a supply of 6028 MW in June, compared to a demand of 6564 MW.

The PPA comes when Gujarat is having difficulty selling its excess electricity. It has around 3000 MW of surplus power, which is set to double over the next few months as private power producers add capacity.

Uttar Pradesh, on the other hand, is one of the largest buyers of power in bilateral trade in India. It also pays one of the highest tariffs in the country to procure it. In May, Uttar Pradesh accounted for 20 percent of bilateral power trade in India.

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