Aadhaar architect Nandan Nilekani says energy sector poised to become India's next UPI

"The next UPI is energy," said Nilekani, the architect of Aadhaar, as he envisioned a radical shift in how energy is produced, consumed, and traded at the household level.

Decentralised energy production as the future

Speaking at the Arkam Annual Meet’s The Great Unlock: India in 2035 event, Nilekani highlighted his vision for decentralised energy systems.

"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 explained.

He emphasised that this shift could redefine energy consumption in India, empowering individuals to actively participate in the energy economy.

Micro-energy entrepreneurs to drive growth

Highlighting the impact of this transformation, Nilekani suggested that decentralised energy solutions could unlock vast entrepreneurial potential. "It is going to be a huge thing (energy) which will create its own set of energy entrepreneurs," he remarked, drawing comparisons with UPI’s widespread adoption and ease of use.

A shift in how energy is perceived

Nilekani also pointed out how the current approach to energy consumption could evolve.

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

UPI's success and India's digital future

Nilekani’s observations carry weight given UPI’s remarkable success. Handling over 80% of India’s digital transactions, the platform has expanded to international markets such as the UAE and France.

In January alone, UPI transactions exceeded 16.99 billion, amounting to more than ₹23.48 lakh crore.

Its seamless integration with banks and fintech platforms has been a key factor in its widespread adoption.

Four pillars of India's development

Addressing the broader landscape of India’s growth, Nilekani identified four critical areas—technology, capital, entrepreneurship, and formalisation—as fundamental to the nation’s progress.

He projected that India's startup ecosystem, currently home to about 150,000 startups, could expand to one million by 2035.