Peer-to-Peer Electricity Trading to be Launched on Pilot Basis in Delhi, Uttar Pradesh

The government is preparing to roll out a peer-to-peer (P2P) electricity trading facility that will allow consumers to directly buy and sell power among themselves, with transactions reflected in their monthly electricity bills.

Under the India Energy Stack (IES), consumers who generate renewable energy, such as through rooftop solar systems, will be able to trade surplus electricity with other users, including across state borders. The system will operate on a secure, trust-based digital framework to ensure transactions are verifiable and scalable.

Participation will require consumers to have a rooftop solar installation, a net meter, and a smart electricity meter. Buyers and sellers will negotiate prices using a mobile application, while settlements will be reflected as cumulative adjustments in discom billing systems. Regular electricity bills will continue as usual.

Officials said that the platform will help prosumers monetise excess power while enabling buyers to access electricity at rates lower than those charged by distribution companies. The initiative is part of the India Energy Stack being developed by REC Ltd. and is expected to be launched at the IndiaAI Summit later this month.

In the initial phase, the facility will be rolled out in parts of Delhi and western Uttar Pradesh through BSES Rajdhani Power Ltd., Tata Power-Delhi Distribution Ltd., and Paschimanchal Vidyut Vitran Nigam Ltd. Together, the three utilities serve around 1.25 crore consumers, though the pilot will begin with about 1,000 consumers in each service area.

Paschimanchal Vidyut Vitran Nigam Ltd Managing Director Raveesh Gupta said that consumers from diverse backgrounds are being identified for the pilot. “Our teams are engaging with farmers, small business owners and domestic users to onboard them for P2P energy trading,” he said.

Peer-to-peer energy trading lets people who generate extra power from renewable sources, such as rooftop solar panels, sell it directly to other users. Instead of depending only on big power companies, local communities can create their own small energy markets.

Studies suggest that peer-to-peer energy trading can strengthen grid resilience by balancing local supply and demand, reducing transmission losses and easing pressure on distribution networks. When combined with smart controls, P2P markets may also lower peak demand and improve utilisation of distributed energy resources.