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AI summit sees rollout of P2P power trading

February 18, 2026 5 min read Science & Technology Economics GS Paper III (Infrastructure: Energy Science & Technology)
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What Happened

  • India's first interstate peer-to-peer (P2P) energy trading platform was launched at the India AI Impact Summit 2026 in New Delhi on February 18, 2026.
  • The PowerXchange app, powered by blockchain, AI, and machine learning, enables consumers and prosumers to trade surplus solar energy directly with each other.
  • A farmer in Uttar Pradesh sold six units of surplus solar power directly to a shopkeeper in Delhi via the platform, earning Rs 30 in what was described as the first live interstate P2P energy transaction.
  • The India Energy Stack initiative selected PowerXchange as one of only two platforms nationwide for advancing P2P energy trading.
  • Uttar Pradesh Power Corporation Limited (UPPCL) facilitated the technology development and user registration. REC Limited served as the nodal agency with FSR Global as knowledge partner.
  • The platform was demonstrated before the Prime Minister and the Union Power Minister.

Static Topic Bridges

Peer-to-Peer Energy Trading and Prosumer Framework

Peer-to-peer (P2P) energy trading allows electricity consumers who also generate power (called "prosumers") to sell surplus electricity directly to other consumers without routing through a traditional utility as intermediary. This model is enabled by distributed energy resources (primarily rooftop solar), smart meters, and digital platforms.

  • Three Indian states -- Karnataka, Uttar Pradesh, and Delhi -- have issued guidelines and regulations supporting P2P trading as of 2026.
  • The Karnataka Electricity Regulatory Commission (KERC) notified the Implementation of Peer-to-Peer Solar Energy Transaction Regulations, 2024 (effective August 6, 2024), allowing participants to negotiate prices based on market conditions.
  • The Delhi Electricity Regulatory Commission (DERC) released separate guidelines for prosumer-consumer P2P transactions in 2024.
  • P2P trading currently operates as a policy sandbox, testing digital systems for identity management, smart meter data exchange, price discovery, billing integration, and settlement within controlled environments.

Connection to this news: The PowerXchange platform launch operationalises the P2P trading framework at interstate scale for the first time, moving beyond state-level pilots to cross-border energy transactions between UP and Delhi.

Electricity Act, 2003 and Open Access Provisions

The Electricity Act, 2003 laid the legislative foundation for liberalising India's power sector by de-licensing generation, introducing open access to transmission and distribution networks, and promoting competition.

  • Section 2(47) defines "open access" as non-discriminatory provision for use of transmission lines or distribution systems by any licensee, consumer, or person engaged in generation.
  • Section 42(2) mandated state commissions to introduce open access in a phased manner for all consumers with loads exceeding 1 MW within five years.
  • Generation was fully de-licensed, enabling any entity to set up generation capacity without a licence.
  • The Act mandates that 10% of power supplied must come from renewable and non-conventional sources.
  • The Central Electricity Regulatory Commission (CERC) oversees interstate markets, while State Electricity Regulatory Commissions (SERCs) handle retail matters -- P2P trading potentially blurs these jurisdictional boundaries.

Connection to this news: The interstate P2P transaction between UP and Delhi operates within the open access framework established by the Electricity Act, 2003, but pushes its boundaries by enabling small prosumers (not just large industrial consumers) to trade across state lines.

Blockchain Technology in Energy Systems

Blockchain provides a decentralised, tamper-proof ledger for recording energy transactions between multiple parties without requiring a central trusted authority. Each transaction is cryptographically secured, time-stamped, and immutable.

  • In energy trading, blockchain automates settlement through smart contracts -- self-executing code that transfers payment when predefined conditions (energy delivery confirmation via smart meters) are met.
  • Blockchain eliminates the need for a centralised market operator, reducing transaction costs and enabling micro-transactions (as small as a few units of electricity).
  • India's National Blockchain Strategy, released by MeitY, identifies energy as a priority application area.
  • Key challenges include scalability (handling millions of micro-transactions), interoperability across state grids, and integration with existing metering infrastructure.

Connection to this news: The PowerXchange platform uses blockchain to record and settle the farmer-to-shopkeeper solar energy transaction across state boundaries, ensuring transparency and trust without requiring a centralised exchange.

India's Renewable Energy Capacity and Distributed Solar

India is pursuing a target of 500 GW of non-fossil fuel energy capacity by 2030, as announced at COP-26. Rooftop solar and distributed generation are critical components of this transition.

  • India's total renewable energy installed capacity reached approximately 258 GW by end of 2025, with 132.85 GW from solar alone (crossing 100 GW in January 2025).
  • Total installed electricity capacity stood at 509.64 GW as of November 2025, with non-fossil sources comprising 51.5%.
  • India added a record 44.51 GW of renewable capacity in 2025, nearly double the 24.72 GW added in the corresponding period of 2024.
  • The PM-Surya Ghar Muft Bijli Yojana targets 1 crore households with rooftop solar installations, creating a large base of potential prosumers.
  • P2P trading provides an economic incentive for rooftop solar adoption beyond net metering, as prosumers can potentially earn market-linked prices rather than the lower feed-in tariffs offered by utilities.

Connection to this news: The farmer's ability to sell six units of surplus solar power for Rs 30 demonstrates a practical revenue model for small-scale solar prosumers, which could accelerate distributed solar adoption and support India's 500 GW target.

Key Facts & Data

  • India's first live interstate P2P energy transaction: farmer in UP sold 6 units of solar power to shopkeeper in Delhi for Rs 30.
  • Platform: PowerXchange, powered by blockchain, AI, and machine learning.
  • Three states with P2P trading regulations: Karnataka (2024), Uttar Pradesh, and Delhi.
  • India's renewable energy capacity: ~258 GW (end 2025), target 500 GW by 2030.
  • India crossed 100 GW solar capacity in January 2025; reached 132.85 GW by November 2025.
  • Record 44.51 GW renewable capacity added in 2025.
  • Nodal agency: REC Limited; technology facilitation: UPPCL.