As part of a larger bid to decentralize the energy marketplace, the Delhi Electricity Regulatory Commission (DERC) has given the nod for a mechanism for interstate and intrastate peer-to-peer (P2P) solar energy trading on a six-month pilot basis.
The Commission said that the energy trading rate on the P2P energy trading platform will be determined between the consumers and prosumers.
These P2P energy transactions are not covered under the existing DERC P2P guidelines.
The approval from DERC comes in the background of the petitioner, Tata Power Delhi Distribution, seeking approval to implement inter-state and intr-state P2P energy trading on a pilot basis.
What is P2P Trading
Under the P2P energy trading platform, consumers will have the option to procure solar and wind energy through P2P trading, unlike through regular DISCOMs channels.
The platform will integrate with smart meters and MDM systems, interface with DISCOM billing platforms, utilize a blockchain-based trust and validation layer, and incorporate an RBI-compliant payment gateway with escrow for assured settlements.
In 2021, Tata Power Delhi Distribution conducted a pilot of intrastate P2P energy trading in Delhi on a fixed-price tariff.
In 2024, DERC released the guidelines for P2P transactions.
Now, the DISCOM has proposed a pilot program between two DISCOMs in Uttar Pradesh, through Paschimanchal Vidyut Vitaran Nigam (PVVNL), and in Delhi, through the petitioner, for Phase I of the pilot by February 15, 2026.
In the second phase, which will be held 3-6 months after Phase I, the petitioner has proposed piloting P2P energy trading between more Delhi DISCOMs and Haryana DISCOMs.
The approval from DERC comes in the background of Tata Power Delhi Distribution seeking nod for the implementation of the P2P energy trading on a pilot basis.
Background
The petitioner approached the Commission to approve a mechanism for interstate and intrastate P2P green energy trading.
Tata Power Delhi Distribution had also asked the Commission to approve wheeling charges of ₹1.01 (~$0.011)/kWh for intrastate P2P energy transactions and for interstate transactions, with the amount split equally between the petitioner and PVVNL.
It also requested transaction charges of ₹0.21 (~$0.002) per kWh each for consumers and prosumers for both interstate and intrastate transactions.
The petitioner requested a waiver of penalties for under-injection and under-drawal of energy, and of cross-subsidy surcharge and additional surcharges for interstate transactions.
