'Every home will be an energy producer because...': Nandan Nilekani predicts India's next UPI moment

Drawing parallels to the Unified Payments Interface (UPI), which has reshaped digital transactions, Infosys co-founder Nandan Nilekani predicted that the energy sector will create millions of micro-entrepreneurs . 

"The next UPI is energy," the Aadhaar creator said as he projected a revolutionary shift in India's energy sector. He envisions a future where every household becomes a hub of energy production, consumption, and trade. 

Speaking at the Arkam Annual Meet's 'The Great Unlock: India in 2035' event, Nilekani elaborated on his vision of decentralised energy production. "Every home will be an energy producer because they have rooftop solar. Every home will be an energy store because they have an EV battery. So, every home is a producer of energy, seller of energy, and buyer of energy. So, like UPI, you will now be able to buy and sell energy," he added. This approach is poised to transform how energy is perceived and utilised in India. 

Highlighting the potential impact, Nilekani suggested that this shift could create millions of micro-energy entrepreneurs, driving economic growth and technological innovation. "It is going to be a huge thing (energy) which will create its own set of energy entrepreneurs," he remarked. The potential for such a transformation mirrors the success of UPI, renowned for its ease of use and widespread adoption. 

"We're used to buying and storing energy in small amounts, when you are buying LPG cylinder, you're buying packetised energy. But electricity we always thought of something coming from the grid," he stated underscoring the potential shift towards decentralised energy solutions. 

Nilekani's insights into UPI's impact on the financial sector add weight to his predictions for the energy sector. The success of UPI is well-documented, with it handling over 80% of India's digital transactions and extending its operations to countries like the UAE and France. In January alone, UPI transactions exceeded 16.99 billion, with a value over Rs 23.48 lakh crore. This widespread adoption is attributed to UPI's user-friendly interfaces and integration with banks and fintech platforms. 

Nilekani addressed four critical areas essential for India's continued development: technology, capital, entrepreneurship, and formalisation. India's startup ecosystem is set for significant growth, with Nilekani anticipating the number of startups to reach one million by 2035. Currently, the country boasts around 150,000 startups.