The Delhi Electricity Regulatory Commission (DERC) has released guidelines for prosumers and consumers to sell and purchase electricity through secure peer-to-peer (P2P) transactions. The Delhi distribution companies (DISCOMs) had filed a petition to determine charges to enable these transactions.

The Commission’s guidelines cater to prosumers, excluding those carrying out ground-mounted projects and consumers who choose to transact energy among themselves through an online platform of service provider(s) or distribution licensees.

The eligibility for participating in P2P transactions applies to prosumers and consumers:

• Whose sanctioned loads or contract demands are 200 kW or equivalent kVA or less
• Whose capacity of the renewable energy system installed or proposed to be installed at the prosumer’s end will be capped at 500% of its sanctioned load
• Who can switch from virtual net metering or group net metering to P2P energy transactions or vice-versa once every financial year

If applicable, those opting for P2P energy transactions will have to terminate their virtual net metering or group net metering connectivity agreement.

Prosumers and consumers must have a time-of-day compliant energy meter or smart meter installed on their premises. The procedure and charges for metering under the transaction will follow the DERC (Supply Code and Performance Standards) Regulations, 2017, and the subsequent amendment.

The service provider can use the data from the distribution licensee’s meters to bill for transactions and compare scheduled transactions with actual transactions on the P2P platform, for which they may need to enter into a separate agreement with DISCOMs.

Registration Procedure

Within 15 days of submission of the registration form, the distribution licensee will check the prosumer’s network compatibility for connectivity with its network.

If the request is rejected, the distribution licensee will provide the applicant with reasons within five days of the form submission.

For resubmitted applications, the distribution licensee must convey acceptance to the applicant within five days of resubmitting the registration form.

If the distribution licensee or its service provider is approved, the P2P participant must register on the P2P platform within five days of accepting the registration form.

Applications for rooftop solar photovoltaic systems up to 10 kW capacity will be accepted without a technical feasibility study, and the distribution licensee will carry out any equal enhancement of the consumer’s sanctioned load as may be required.

Scheduling for P2P Transactions

For transactions, participants must submit schedules at least 8-time blocks before the commencement of supply. Rescheduling will be restricted during the 8-time blocks preceding the commencement of actual supply.

Prosumers will not transact more than 20% capacity utilization factor of the installed capacity of a renewable energy system per day.

If the consumer does not submit the schedule, then the energy injected on the nth day will be adjusted per the prosumer’s net metering arrangement.

Billing and Energy Accounting

The billing cycle of the transactions must synchronize with the billing cycle of the distribution licensee.

The service provider employed by the DISCOMs will utilize time block-wise meter data daily for prosumers and consumers to measure the actual energy generated and consumed for billing purposes.

The distribution licensee will raise the bill for Total Demand (P2P transaction + purchase from the distribution licensee) per the tariff order and supply code provisions.

Payments made by the consumers will be settled in the following order of priority: (a) energy transacted by them on the P2P platform, (b) transaction charges, and (c) the energy supplied by the distribution licensee.

Other Charges  

The renewable energy system under the peer-to-peer transaction will be exempted from wheeling, banking, cross-subsidy, and other charges until March 31, 2027, or as decided by the Commission.

The distribution licensee will cover the capital expenditure for Service Line-cum-Development and network augmentation related to renewable energy systems registered under P2P transactions. These costs will be included in the Aggregate Revenue Requirement for programs implemented until March 31, 2027.

RPO for P2P Transactions

The electricity generated under these guidelines will count for Renewable Purchase Obligation (RPO) compliance for the respective distribution licensee if the consumer is not an obligated entity.

In January, the Karnataka Electricity Regulatory Commission released a draft proposal to allow P2P solar energy trading using blockchain technology whereby electricity consumers can become prosumers by installing rooftop solar modules and selling excess power generated to consumers directly.

Mercom reported that the innovative concept of P2P energy trading is fraught with challenges arising from a lack of jurisdictional clarity, awareness, and dispute resolution.