In a major step toward modernizing the power sector, the Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved a pilot project for interstate peer-to-peer (P2P) trading of renewable energy. The proposal was filed by Pashchimanchal Vidyut Vitran Nigam Limited (PVVNL) and will operate under the India Energy Stack framework, a national digital platform launched in June 2025 to support digital and consumer-focused electricity markets.
The pilot will allow prosumers — consumers who also generate electricity, mainly through rooftop solar systems — and regular consumers to trade power directly with each other, even across state borders. In the first phase, PVVNL will work with Delhi-based power distribution companies such as Tata Power Delhi Distribution Limited and BSES Rajdhani Power Limited. The trading platform will use secure blockchain technology to record bids, fix prices, and settle payments digitally. This system is expected to ensure transparency, data security, and smooth transactions between buyers and sellers.
To make the pilot workable, UPERC has granted certain regulatory relaxations for six months. One of the main issues addressed in the order is wheeling and transaction charges. For prosumers under PVVNL, the wheeling charge has been set at ₹1.01 per unit. The Commission has also agreed to a reciprocal arrangement with the Delhi Electricity Regulatory Commission to manage similar charges for buyers in Delhi. In addition, a transaction charge of ₹0.42 per unit, including GST, has been approved. This fee will be shared equally between the buyer and the seller.
The Commission has made it mandatory for all participants to install smart meters. These meters will provide real-time data, which is necessary for accurate energy accounting and settlement. To encourage participation during the trial phase, UPERC has waived penalties related to under-supply or under-consumption of contracted energy. The pilot will run on the existing power distribution network, so no new infrastructure will be required.
The project is being seen as an important step toward building a Digital Energy Grid in India. It aims to give greater visibility to India’s digital power reforms at the national and global levels. By enabling direct energy trade between individuals and across states, the framework is expected to empower rooftop solar owners and offer consumers more options to buy green power. After six months, the results of the pilot will be reviewed to decide on a long-term regulatory structure for P2P energy trading in the country.
