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.

Tata Power Delhi Distribution also asked the Commission to waive ISTS transmission charges, ISTS transmission losses, national load dispatch center/regional load dispatch center system operation charges, state load dispatch center charges, open access charges, and scheduling charges.

It also sought clarity on whether P2P energy transactions would contribute to compliance with the renewable purchase obligations.

Commission’s Analysis

The Commission noted that, since the existing DERC P2P Guidelines provide a broad framework for implementing and facilitating the pilot, it has given the petitioner the go-ahead to roll out P2P green energy trading transactions.

It said that other DISCOMs intending to participate in the pilot must submit petitions for the approval of the pilot.

It also approved transaction charges of ₹0.42 (~$0.005) per kWh, to be borne equally by the prosumer and the consumer. Prosumers and consumers will pay ₹0.21 (~$0.002) /kWh each through their billing settlement mechanism.

The Commission exempted wheeling charges for P2P energy transactions undertaken within the licensed area of Tata Power Delhi Distribution, between intrastate DISCOMs, and between interstate DISCOMs, up to the territorial limit of the NCT of Delhi.

In the case of interstate P2P transactions, the Commission said UPERC’s regulations and guidelines will govern wheeling charges.

For intrastate P2P energy transactions, Tata Power Delhi Distribution will devise billing and settlement mechanisms with other DISCOMs in the NCT of Delhi. For interstate P2P energy transactions, Tata Power Delhi Distribution and PVVNL will provide a mechanism on the P2P platform to integrate settlement of such transactions into the existing billing and settlement systems of the petitioner and PVVNL.

Billing for intrastate Discoms and interstate DISCOMs’ P2P energy transactions will be handled by the petitioner in priority over billing for electricity distributed/supplied by the petitioner.

To ensure the seamless undertaking of interstate P2P energy transactions, the petitioner and the PVVNL must devise a uniform time-block mechanism and submit it to the Commission.

The Commission also removed the transaction limit for P2P energy transactions, previously set at the capacity utilization factor of the installed solar capacity.

During the pilot period, the Commission also replaced penalties for under-injection and under-drawal of energy.

The Commission also directed the petitioner to approach the Central Electricity Regulatory Commission to seek a waiver of interstate transmission charges for interstate P2P energy transactions.

It added that P2P energy transactions will count toward compliance with the RPO for the respective distribution licensee if the consumer is not an obligated entity.

In January 2026, public infrastructure finance company REC floated an expression of interest for participation in an Indian Energy Stack pilot focused on an interstate P2P energy trading use case.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.