The Delhi Electricity Regulatory Commission (DERC) has issued a landmark order approving a pilot project for Peer-to-Peer (P2P) green energy trading in the national capital. The petition was filed by Tata Power Delhi Distribution Ltd. (TPDDL), which proposed the creation of a system that allows consumers and prosumers to directly trade surplus solar power through a blockchain-based digital platform.

The pilot project will run for up to six months and aims to establish a digital energy marketplace in Delhi. Earlier guidelines issued in 2024 allowed such transactions only within a single distribution company (DISCOM). However, this new order expands the scope of trading. It now permits intra-state trading between different DISCOMs in Delhi and also allows inter-state transactions with Pashchimanchal Vidyut Vitran Nigam Limited (PVVNL) in Uttar Pradesh.

To support the implementation of the project, the Commission has approved key financial and operational mechanisms. A transaction fee of ₹0.42 per kWh, including GST, has been approved. This charge will be shared equally between the buyer and the seller at ₹0.21 per kWh each. The revenue generated from these charges will be treated as non-tariff income for the DISCOMs.

In a major relief to participants, DERC has ruled that no wheeling charges will be applicable for P2P transactions conducted within Delhi. For inter-state trading, however, the wheeling charges for the Uttar Pradesh portion will be governed by the regulations of the Uttar Pradesh Electricity Regulatory Commission (UPERC).

The Commission has also introduced several operational relaxations to encourage participation. The earlier 20 percent Capacity Utilization Factor (CUF) restriction on solar plants has been relaxed, allowing prosumers to trade their entire generation. In addition, penalties for under-injection or under-drawl of energy have been waived during the pilot period to reduce risks for participants.

All P2P transactions will be integrated into the existing billing systems of the DISCOMs. Importantly, settlements related to P2P trades will receive priority over regular electricity supply charges, ensuring smooth financial reconciliation.

The initiative aligns with the broader vision of the India Energy Stack (IES), which aims to modernize India’s electricity sector, drawing inspiration from the success of UPI in digital payments. While DERC has provided clarity on state-level aspects, it noted that any waiver related to national transmission charges falls under the jurisdiction of the Central Electricity Regulatory Commission (CERC).

The pilot project is expected to act as a model for decentralized green energy trading in India, giving consumers more choice while ensuring grid stability.