Unlocking the power of peer-to-peer energy trading in India

India’s electricity sector, characterised by centralised generation and long-term power purchase agreements (PPAs), is facing challenges due to the growing decentralised renewable energy (DRE) market. This growth, particularly driven by rooftop solar (which constitutes nearly 21 per cent of India’s 110.83 GW of installed solar capacity), calls for updated energy trading methods. Unlike centralised power, DRE often produces surplus power at the point of consumption, making it suitable for flexible, real-time and decentralised market mechanisms such as peer-to-peer (P2P) trading.

Simply put, P2P trading enables those with DRE systems (prosumers) to sell surplus power using blockchain platforms, allowing direct energy transactions through transparent, decentralised ledgers. For consumers, it is a way to procure green energy at competitive rates. P2P trading also supports active demand-side management through real-time data on usage and transactions, which can help reduce energy bills.

Recognising P2P’s potential to drive rooftop solar adoption, three Indian states – Karnataka, Uttar Pradesh and Delhi – have issued guidelines and regulations to support such trading. However, certain gaps in these regulations could limit their effectiveness and scalability.

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