New model of solar electricity in Delhi: Now consumers will be able to buy and sell electricity among themselves, DERC approval
There is news of big relief and change for electricity consumers in the capital Delhi. Now people will be able to buy and sell among themselves the extra electricity generated from the solar panels installed on the roof of their homes. Delhi Electricity Regulatory Commission (DERC) has approved peer-to-peer (P2P) energy trading under a six-month pilot project. The Delhi Electricity Regulatory Commission (DERC) has approved peer-to-peer (P2P) power trading, settling petitions filed by city distribution companies BSES Rajdhani Power Limited (BRPL) and Tata Power Delhi Distribution Limited (TPDDL).
Green signal to pilot for 6 months
The electricity regulator has allowed P2P power trading at inter-distribution company and inter-state (Delhi-Uttar Pradesh) level under a pilot project for a period of six months with certain conditions. With this, Delhi consumers will now be able to sell the excess electricity generated from solar panels to other consumers even if they are in different Discom areas. According to officials, DERC did not allow wheeling and network charges demanded by distribution companies. Apart from this, open access charges within Delhi were also rejected. The regulator believes that additional charges in the initial phase may affect the feasibility of the project.
According to officials, DERC approved the scheme while disposing of the petitions of city distribution companies BSES Rajdhani Power Limited (BRPL) and Tata Power Delhi Distribution Limited (TPDDL). The regulator has also allowed P2P power trading at inter-distribution company and inter-state (Delhi-Uttar Pradesh) level for six months with certain conditions.
This arrangement will change the way electricity is produced, purchased and sold and consumers will get a more active role in the electricity sector. Importantly, the Commission did not approve the wheeling and network charges demanded by the distribution companies, and also rejected the open access charge within Delhi.
(BRPL) spokesperson said that it is a matter of pride for them to be a part of this important pilot project. He said this initiative reflects our commitment to support forward-looking regulations and modern technology that benefit consumers and promote sustainability.
According to officials, all major power distribution companies of Delhi including BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited (TPDDL) along with BRPL will participate in the peer-to-peer (P2P) power trading pilot project. This initiative will also be showcased during the upcoming AI Summit to be held in Delhi.
Electricity business will be connected with smart technology
Under the pilot project, Discom companies will provide technical support to the trading platform and onboard eligible consumers and ‘prosumers’ (i.e. consumers who also generate power themselves). For this, preparation of smart meter and net meter will be ensured. Also, technology based trading platforms approved under the India Energy Stack framework will be integrated into the system.
According to officials, discom companies will implement secure digital onboarding, wherein both consumers and ‘prosumers’ (consumers generating electricity) will be onboarded through verified credentials based authentication. With this, adjustment of the units of electricity sold can be made directly in the bill.
All consumers with smart meters will be able to participate in this project. For this they will have to get verified by the Discom and register on the approved trading platform. After registration, both the consumer and the prosumer will have to go through the authentication process, after which they will be able to participate in the buying and selling of electricity.
Buying and selling will happen through digital platform
Officials said consumers will be able to choose the offers available on the digital platform and send requests to purchase electricity. At the same time, the complete record of electricity sold will be kept through digital ledger based system. This detail will also be visible in the monthly electricity bill of the consumers, making the entire process transparent. According to officials, only those ‘prosumers’ (those who generate electricity themselves) who have rooftop solar panels installed in their homes or institutions will be able to participate in the scheme. Also, only consumers with load less than 200 kilowatts will be eligible to participate in it.
Electricity price will be decided by mutual consent
The price of electricity sold under the P-to-P system will be mutually agreed upon on the trading platform between the consumer and the prosumer. This entire process will take place within the regulatory framework. Officials said that except those related to the trading platform, all other charges have been waived off by the Delhi Electricity Regulatory Commission (DERC). Consumers will continue to receive their regular discom electricity bills, which will clearly reflect the adjustments related to P2P trading.
Trade started at inter-state level also
This P-to-P power trade, initiated between Delhi and Uttar Pradesh, is being led by India Energy Stack as one of the first structured inter-state energy trade pilot projects in the country. BSES Rajdhani Power Limited (BRPL), Tata Power Delhi Distribution Limited (TPDDL) and Paschimanchal Vidyut Vitran Nigam Limited (PVVNL) are the partner distribution companies in this initial phase.
What will be the benefits?
According to experts, this initiative will increase access to green energy, help consumers save on electricity costs and provide additional income opportunities to prosumers installing solar panels. Also, transparent accounting will be ensured through digital platform.
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