Can electricity go ‘digital’ and allow energy ‘trading’ across India? The Indian government is currently running a pilot program to answer this and other questions through the India Energy Stack initiative. The government has dubbed IES the ‘digital backbone’ of the power sector and believes it will “play a vital role in integrating renewable energy, enhancing DISCOM efficiency, and delivering future-ready power services”.
“India Energy Stack is envisioned to create a digital enablement for the power sector so that the disparate parts of the power system can connect and communicate securely through standard data exchange protocols,” Union Minister Shripad Naik told the Rajya Sabha on Monday.
What is the India Energy Stack?
The IES is essentially a shared set of specifications that will allow every power-sector system to exchange data securely and verifiably without custom integrations. Put more simply, it will act as a “digital blueprint” for the entire energy sector and let power companies, regulators, and consumers exchange data.
According to the written reply shared by Naik in Parliament, it aims to “develop a unified, secure and interoperable data exchange mechanism”. This would allow various services and systems to work together seamlessly across the power sector value chain “thereby improving interoperability”.
“The enablement created by IES aims to facilitate seamless integration of technology solutions related to enhancing efficiency of the distribution sector and consumer-centric services like load forecasting, demand response programmes, energy transaction, and overall digitalisation in the power sector,” the Union Minister added.
India’s UPI for Power? Building a ‘Digital Mandi’ for rooftop solar
REC Limited also touched upon the idea of ‘peer-to-peer trading in its expression of interest for eligible providers to participate in the pilot project. The Maharatna Central Public Sector Enterprise operates under the Power Ministry and serves as the designated nodal agency leading the India Energy Stack.
A notice posted on the REC website adds that the pilot project will “deploy IES specifications for an inter-state P2P trading workflow by testing end-to-end interoperability, including consent-based data exchange, standard payloads, auditability, and integration with utility and market-relevant systems”.
“Just like UPI lets you transfer money directly between bank accounts, P2P lets you transfer ‘Energy Credits’ directly between homes. Your surplus solar energy powers your neighbor’s house, and you get paid for it directly on your bill,” the state-owned Paschimanchal Vidyut Vitran Nigam Limited in Uttar Pradesh added.
The PVVNL website also likens peer-to-peer energy trading to a ‘digital mandi’ or local market where one can buy from the central grid or even a neighbour who has extra solar energy.
How will the India Energy Stack work?
A PIB press note released in June 2025 noted that the power sector was facing “both unprecedented opportunities and complex challenges”. The India Energy Stack is envisaged as a “standardised, secure, and open platform to manage, monitor, and innovate across the electricity value chain”.
“Rapid growth in renewable energy, electric vehicles, and consumer participation in energy markets is transforming the sector, but fragmented systems and a lack of seamless digital integration remain key barriers,” the PIB statement added.
The Indian Energy Stack will offer:
- Unique IDs for consumers, assets, and transactions
- Real-time, consent-based data sharing
- Open APIs for seamless system integration
- Tools for consumer empowerment, market access, and innovation
Pilot project underway – How much will it cost?
The Power Ministry confirmed on Monday that the Centre has already initiated the India Energy Stack. Naik had said in March that a pilot project would be rolled out during the current fiscal year. His latest response in Parliament confirmed this timeline — adding that “implementation is underway”. The Power Ministry plans to implement IES across the country after a successful demonstration.
The pilot project is being run by an IES taskforce led by REC limited across five states — Delhi, Uttar Pradesh, Gujarat, Andhra Pradesh, and Maharashtra (Mumbai). Three DISCOMs have already been named to the first phase (Paschimanchal Vidyut Vitran Nigam Limited in UP and Tata Power Delhi Distribution Limited, BSES Rajdhani Power Limited in Delhi). The project began in early 2026 and formal evaluation reports are likely to be scrutinised by the Power Ministry after a 12 month project test. A national rollout blueprint is expected after the findings.
“The total fund allocated for the development of the India Energy Stack is Rs. 51.3 crore. Of this Rs 3.88 crore has been released,” the MoS Power had told Rajya Sabha in March 2026.
The power ministry has also allocated Rs 100.9 crore for training and capacity building of distribution company personnel in digital systems under the Revamped Distribution Sector Scheme. According to the latest data released by the government, Rs 23.36 crore had been utilised till July 2026 and 14,853 personnel trained.
Task force to chart out India Energy Stack roadmap
The Minister of State added that the power ministry had also formed a task force to chart a roadmap for the IES. The team consisted of “domain experts and various stakeholders—including representatives from ministries, state utilities, regulators, Gencos and Transcos”.
“Distribution utilities of Delhi, Gujarat, Andhra Pradesh, Uttar Pradesh and Mumbai have been identified for the pilot (Proof-of-Concept) implementation of IES and the implementation is underway,” he added.
‘AI a game changer for distributed RE’
Officials note that the integration of artificial intelligence with the India Energy Stack will drive a massive expansion in distributed renewable energy initiatives — transforming millions of consumers into “prosumers” while optimising grid predictability and lowering overall power costs.
The Joint Secretary at the Ministry of New and Renewable Energy opined during the India AI Impact Summit in February that the combination would be a “game changer” for distributed renewable energy. JVN Subramanyam noted that India’s total installed power capacity currently sourced around 272 gigawatts (52%) from non-fossil fuel sources. At least 140 GW came from solar with 38 gigawatts of distributed renewable energy. The term refers to small-scale, decentralised power generation systems such as rooftop solar, small wind turbines, or biomass.
“Can we build predictability into this? There are a lot of generators who require weather forecasting and predictive analytics. Can we get this onto the AI tool? Lastly, as a consumer, as a prosumer, whether I know it is my rooftop system, is my solar pump generating enough when compared to my peers? Can I be able to sell my electricity to the other peers, which the B2B is trying to enable? So, these are enabling decisions,” he had said.
Practical challenges and privacy risks
Creating a digital system that connects the Indian power sector also comes with a lengthy list of practical challenges and privacy concerns. The system envisions real-time data sharing and peer-to-peer energy trading across the nation — with hardware bottlenecks and physical grid constraints that must be overcome.
The pan-India deployment of smart meters also becomes a matter of urgency since peer to peer energy trading will require advanced infrastructure to record real-time generation and consumption. Local structures may also need upgrading to carry the current without voltage instability or overheating issues.
Implementation will also rely on state distribution companies (who often operate proprietary, siloed systems) and extensive coordination at the state level. It is pertinent to recall that electricity is a concurrent subject as per the constitution — with state bodies having a vocal say in inter-state tariff structures, wheeling charges, and dispute resolution.
The ‘One Nation, One Grid, One Price’ plan
India completed the ‘One Nation, One Grid, One Frequency’ setup in late 2013 — unifying several regional systems to allow a seamless transfer of power. The India Energy Stack is a natural progression in the AI-driven digital age, modelled after the UPI, Aadhaar and DigiLocker setups. The motto has now changed to ‘One Nation, One Grid, One Price’ as the focus moves from capacity to integration.
The draft National Electricity Policy unveiled earlier this year also outlines plans for shared distribution networks “to enhance competition and efficiency”. It also focuses on real-time data sharing across utilities and cybersecurity with in-country data storage as India races towards a target of 2,000 kWh per capita consumption by 2030.
