DERC OKs pilot on peer-to-peer power trading

New Delhi: In a landmark move, Delhi Electricity Regulatory Commission (DERC) on Wednesday cleared the way for consumers to buy and sell electricity among themselves. It permitted Tata Power Delhi Distribution Ltd and BSES Rajdhani Power Ltd to launch a pilot project on peer-to-peer energy trading.The initiative aims to empower prosumers — consumers who generate their own power through renewable sources like rooftop solar — to buy and sell surplus electricity, effectively turning residential and commercial rooftops into mini power plants.
Officials said the pilot is likely to be launched in north and south Delhi, covering around 1,000 consumers in each zone, this month. "It will allow trading within the two discoms and also between Delhi and Uttar Pradesh as Purvanchal Vidyut Vitaran Nigam Limited is also participating in the initiative," an official said.Smart meter-enabled consumers are the primary target for the pilot. Participation will be allowed only after verification by the discoms and onboarding through an approved trading platform. After evaluating its performance, the project may be expanded citywide, enabling all eligible consumers to trade in energy like a commodity.The discoms will showcase the pilot at AI summit to be held at Bharat Mandapam from Feb 16 to 20.Unlike the traditional model where surplus power is sold back to a discom at a fixed rate, peer-to-peer energy trading allows buyers and sellers to mutually agree on transaction prices via a secure, blockchain-based digital platform. Delhi govt data shows a significant rise in renewable power generation, including solar and non-solar sources, over recent years: from 129 million units in 2021-22 to 274 in 2022-23 and 1,518 in 2023-24. However, it decreased to 1,288 million units in 2024-25. This trend reflects Delhi's growing adoption of rooftop solar and decentralised solar projects, contributing to a cleaner and more sustainable electricity supply.In a major relief for solar adopters, DERC has relaxed several technical restrictions for the pilot. Most notably, the 20% capacity utilisation factor cap has been lifted, allowing prosumers to sell their entire surplus generation. The objective is to create a consumer-centric, digitally governed energy ecosystem, it said. To encourage participation, wheeling charges, cross-subsidy surcharges and other additional surcharges have been waived within Delhi's territorial limits until the pilot concludes. The trading will be facilitated by a digital energy grid powered by India Energy Stack. A nominal transaction fee of 42 paise per unit (kWh), split equally between the buyer and seller, has been approved. The discoms will continue to handle physical power distribution, with peer-to-peer settlements integrated directly into participants' monthly electricity bills. Buyers need a smart electricity meter, while sellers require a rooftop solar system with a net meter. Prices can be negotiated via a mobile app, and trades will appear as cumulative adjustments in regular bills. The system will simplify the sale of surplus electricity for prosumers, while buyers will access power at rates lower than standard discom charges.