NEW DELHI, Feb. 23 -- India recently piloted peer-to-peer power trading that will enable consumers such as households, businesses and farmers who generate renewable energy to directly sell their surplus power to other consumers through digital protocols. Mint examines how digital public infrastructure under the India Energy Stack helps such transactions.

Peer-to-peer (P2P) energy trading refers to the direct trading of power between consumers. Once implemented, it will allow households and entities that produce solar power through rooftop installations to sell their excess generation to other consumers. Consumers who produce and sell excess power are called prosumers.

P2P trading of power will be done through a digital platform. A pilot...