The Uttar Pradesh Electricity Regulatory Commission (UPERC) has permitted Pashchimanchal Vidyut Vitran Nigam (PVVNL) to undertake a pilot demonstration of interstate peer-to-peer (P2P) trading of renewable energy under the India Energy Stack (IES) framework.

The Commission approved the pilot for a limited six-month period, applicable to Phases I and II of the proposed project.

UPERC approved the use of blockchain or other secure digital technology for the pilot and permitted participation of prosumers and consumers across PVVNL and Delhi distribution licensees, namely the Tata Power Delhi Distribution (TPDDL) and BSES Rajdhani Power (BRPL).

It also granted a waiver of the Cross Subsidy Surcharge (CSS) for energy transacted under the interstate P2P pilot and waived penalties for under-injection and under-drawal by consumers during the pilot period.

However, the Commission clarified that the waiver of interstate transmission-related charges and other system operation charges does not fall within the jurisdiction of state commissions.

Background

PVVNL filed the petition seeking approval and relaxation of certain provisions to implement a pilot interstate P2P renewable energy trading project under the India Energy Stack framework.

The Ministry of Power launched the India Energy Stack initiative in June 2025 as a Digital Public Infrastructure for the power sector, with REC designated as the nodal agency.

The proposed pilot aims to demonstrate interstate P2P trading in the National Capital Region, involving PVVNL in Uttar Pradesh and Delhi distribution licensees TPDDL and BRPL in Phase I, followed by Dakshin Haryana Bijli Vitran Nigam in Phase II.

UPERC had earlier issued P2P Guidelines in April 2023, becoming the first State Electricity Regulatory Commission to establish a structured framework for rooftop solar-based P2P trading within a distribution licensee’s area.

However, the existing guidelines were designed for intra-state transactions and did not address interstate P2P trading, particularly regarding wheeling charges, CSS, settlement mechanisms, and cross-border billing.

PVVNL sought multiple relaxations, including approval to use blockchain-based platforms, permission for participation of rooftop solar prosumers under gross, net metering, and net billing models, levy and sharing of wheeling charges at ₹1.01 (~$0.011)/kWh for interstate transactions, approval of platform service fees, waiver of penalties for under-injection and under-drawal, and waiver of CSS and additional surcharges.

Commission’s Analysis

UPERC examined the petition in light of its existing P2P Guidelines, rooftop solar regulations, and a similar order issued by the Delhi Electricity Regulatory Commission.

The Commission pointed out certain inaccuracies in the petitioner’s comparative table regarding eligibility of net billing prosumers, smart meter requirements, and applicability of CSS.

It clarified that net billing prosumers were already eligible and that smart meter requirements had been amended in December 2025.

On other issues, the Commission permitted interstate P2P transactions under the pilot framework in coordination with DERC’s order.

It allowed recovery of wheeling charges at ₹1.01 (~$0.011)/kWh and approved transaction charges of ₹0.42 (~$0.0046)/kWh for intra-state and interstate transactions, to be borne equally by the prosumer and the consumer.

UPERC also allowed a waiver of CSS for energy transacted under the pilot and granted a waiver of penalties for under-injection and under-drawal, while maintaining that provisions for over-injection and over-drawal would continue to apply.

The Commission further directed that prepaid consumers must receive monthly bills incorporating P2P transactions and mandated that scheduling for P2P transactions be submitted at least eight-time blocks before the commencement of the schedule.

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