India Energy Stack: Powering the Digital Grid of the Future
India’s electricity exchanges which were once plain trading platforms are fast becoming engines of market reform. Short-term power markets, including all channels such as power exchanges, bilateral trades, direct contracts, and DSM, accounted for about 12.5% of India’s total electricity generation in FY 2023-24. But with just 7% of power currently traded on IEX or PXIL and DISCOMs under continued financial strain, deeper transformation is needed.
Enter the India Energy Stack (IES) – a foresight oriented digital public infrastructure initiative by the Ministry of Power and FSR Global, designed to do for electricity what Aadhaar and UPI did for identity and finance.
Here’s whats on the horizon:
| Component | What it means | Why it matters |
|---|---|---|
| Digital IDs for Energy Assets | Each generator, battery, solar panel, and EV charger will have a unique identifier. | Enables accurate tracking and participation in markets (like carbon trading or green power). |
| Open APIs & Data Sharing | Seamless exchange of power-related data between DISCOMs, market operators, and consumers. | Boosts transparency, efficiency, and innovation in scheduling and pricing. |
| Innovation Sandboxes | Regulatory and digital testbeds for virtual power plants (VPPs), smart meters, and energy fintech. | Helps test new business models without risking grid security. |
| Utility Intelligence Platform (UIP) | An upcoming tool to process and visualize grid-level intelligence. | Will help utilities and policymakers respond faster to demand-supply changes and integrate RE better. |
What Makes IES Different?
Unlike previous reform efforts that focused solely on physical infrastructure or regulation, the IES takes a digital-first, modular approach. It aims to:
- Break silos between transmission, distribution, generation, and consumers.
- Allow new players (like aggregators, startups, and RE developers) to enter and compete fairly.
- Put power back into consumers’ hands – through real-time pricing, green energy traceability, and the ability to sell excess power or carbon savings.
This could transform power markets from rigid, vertically integrated systems into open, competitive, and responsive ecosystems similar to what UPI did for payments or ONDC for e-commerce.
What It Means for the Power Sector?
The India Energy Stack is more than digital plumbing – it’s a blueprint for a smarter, greener electricity market. Here’s what’s coming for key players across the sector:
For Regulators & Policymakers:
Real-time, auditable data will enable tighter compliance, smarter tariffs, and better oversight of RE integration and open access.
For Generators & Traders:
Granular RECs and carbon credits mean faster, more credible green transactions – backed by verifiable, high-quality data.
For C&I Consumers:
Easier participation in open access and dynamic pricing. Aggregation models will unlock clean energy for smaller players too.
For DISCOMs & Grid Operators:
Better demand visibility and forecasting. Interoperable platforms will reduce friction in settlement, scheduling, and load management.
For Tech & Market Innovators:
Open APIs and digital infra like UEI will fuel new tools for forecasting, compliance, and consumer participation.For Everyone:
Greater transparency, lower transaction costs, and a more responsive, future-ready power market.
The India Energy Stack could revolutionise electricity trading, enhance governance, and streamline the entire power sector ecosystem. A phased rollout through pilots, backed by strong data governance, aligned regulations, and capacity building, can build trust and readiness. With private sector innovation and continuous feedback, it can unlock efficiency, innovation, and inclusivity at scale.
“This is not just about trading more electricity. It’s about reimagining how electricity is priced, tracked, and governed in a digital India. And the time to act is now.”
Click here to access the India Energy Stack Concept Brief.