State utilities in India to test blockchain-enabled P2P solar energy trading

Uttar Pradesh, a state in northern India is testing a blockchain-enabled peer-to-peer solar energy trading platform. The blockchain start-up, Power Ledger in partnership with India Smart Grid Forum (ISGF) and state utilities will run the pilot in few selected government buildings in the Lucknow city with rooftop solar panels installed.

The first phase of the pilot is expected to be completed in March 2020. The results will be used to formulate appropriate regulations on the peer-to-peer trading of solar energy.

Power Ledger’s platform will be integrated with smart meter systems to “enable households to set prices, track energy trading in real-time and enable the settlement of surplus solar transactions in real-time through smart contracts executed on the blockchain,” said ISGF Executive Director Reena Suri.

The current state of rooftop solar capacity in India:

India’s energy-consumption growth is currently faster than that of all major economies. In its efforts to move further towards sustainable development, the Government has set a target of installing 40 GW of grid-connected rooftop solar capacity across the country by the year 2022. Also, the government offers subsidies for installing solar panels on residential and institutional buildings.

Overall, India’s rooftop solar capacity currently is estimated at around 3.8 gigawatts (GW), growing at a year-on-year rate of 75%, but most of it comes from commercial and industrial buildings.

While commercial and industrial buildings are increasingly adopting solar panels, households account for only 9% of the total rooftop solar capacity, according to Bridge to India, a renewable energy consultancy firm.

The adoption of rooftop solar panels is highest in the following states (SARAL ranking):
1. Karnataka
2. Telangana
3. Gujarat
4. Andhra Pradesh
5. Rajasthan

Among 31 Indian states, Uttar Pradesh (UP) is ranked 20th. UP government in an effort to increase the adoption of rooftop solar panels has partnered with India Smart Grid Forum.

Changing the status quo by enabling peer-to-peer energy trading:

ISGF who works to accelerate the adoption of innovative smart grid technologies in India, including renewable energy is now assisting the UP government to introduce blockchain technology to enable peer-to-peer (P2P) trading of solar energy in India.

The government hopes by enabling P2P solar energy trading, individuals may be encouraged to look at it as a source of income. The owners can profit from the surplus renewable energy generated from their rooftop solar panels.

As per the current growth rate of rooftop solar panel, only 38% of the 40 GW target will be achieved. If the blockchain pilot is successful, it could be an important infrastructure to achieve the government goals of increasing rooftop solar capacity.