The Karnataka Electricity Regulatory Commission (KERC) has introduced the KERC (Implementation of peer-to-peer Solar Energy Transaction) Regulations, 2024 to promote renewable energy and innovative technologies.

The regulations, which apply to all distribution licensees and eligible consumers in Karnataka, aim to facilitate the transaction of rooftop solar energy through blockchain-based platforms, enabling consumers to sell surplus power directly to other consumers.

The new regulations are built on the KERC (Implementation of Solar Rooftop Photovoltaic Power Plants Regulations, 2016, which allowed consumers to inject energy into the grid under net or gross metering arrangements.

Recognizing the emerging concept of Peer-to-Peer (P2P) solar energy transactions, where consumers sell surplus power to other consumers, the KERC aims to accelerate the adoption of rooftop solar, enhance asset utilization, and foster innovative technologies.

The regulations define key terms such as actual injection, blockchain, P2P platform, and transaction price.

A P2P prosumer is a person who has registered to sell solar energy through the P2P platform, while a P2P consumer has registered to buy solar energy.

Eligibility

• The regulations apply to registered domestic consumers and SRTPV domestic prosumers with net or gross metering arrangements.
• Multiple consumers and prosumers can engage in energy transactions through the P2P platform.
• Distribution licensees must provide gross or net-metering arrangements to eligible consumers.
• Prosumers can select consumers for preferential energy exchange or engage in dynamic energy exchange through the P2P platform.

Conditions for P2P Participants, Service Providers, and Distribution Licensees

• P2P participants must ensure electrical safety and data privacy.
• Service providers must register with distribution licensees and ensure seamless operation and settlement.
• Distribution licensees must integrate their systems with the service provider and ensure metering is in order.

Implementation and Reporting

• A transparent procedure for enabling eligible consumers to transact energy on a first-come, first-served basis.
• P2P participants must register with their distribution licensee, who will communicate with the service provider.
• Smart meters must be installed at the participant’s cost.

Metering System

• Participants must install post-paid smart meters that are compliant with CEA standards.
• The service provider will use the distribution licensee’s meter data for billing and reconciliation.

Energy Accounting and Settlement

• Billing cycles of the P2P platform and distribution licensee must be synchronized.
• Distribution licensees will generate bills based on mutually agreed transaction prices.

Commission’s Powers

• The Commission may issue directions and orders for the implementation of these regulations.
• Provisions can be relaxed or modified by the Commission as necessary.

The P2P solar energy transactions offer various benefits, including decentralization, which empowers consumers to generate and sell their own energy. This system also enhances the adoption of solar energy, promoting renewable energy integration.

Efficiency and flexibility are optimized, reducing energy wastage and potentially lowering energy costs for consumers. Additionally, P2P solar energy transactions support a more resilient energy grid.

P2P transactions help reduce carbon footprint through the increased use of renewable energy.

The Delhi Electricity Regulatory Commission recently released guidelines for prosumers and consumers to sell and purchase electricity through P2P transactions.

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