10 Rules To Remember For Peer-To-Peer Solar Trading In Karnataka

Karnataka: 10 Rules To Remember If You Want To Do Peer-To-Peer Solar Energy Trading

Months after releasing the draft regulations to regulate the peer-to-peer solar energy transactions in Karnataka, the Karnataka Electricity Regulatory Commission (KERC) has approved the final regulation. The new KERC (Implementation of Peer-to-Peer Solar Energy Transaction) Regulations, 2024 is now all set to come into force with its notification in the official gazette. 

The new regulations are implied for the rooftop solar consumers (prosumers) who are willing to trade their surplus solar power with their peer in the neighbourhood at a price mutually agreed between them. This new system allows the producers of surplus solar energy to maximise the benefits of solar power generation with better monetary benefits. The whole trading under this regime is done through an online blockchain platform. 

Following are the main features of the new Peer-To-Peer Solar Energy Transactions as per new KERC Regulation-

Eligibility

These rules will be applicable to the residential rooftop solar consumers having net metering or gross metering arrangements. This peer-to-peer solar energy transactions could be done among multiple consumers and prosumers.

First come first served

The new KERC regulations said that the local discoms will provide gross metering or net metering arrangement to the eligible consumers in its area from time to time on a non-discriminatory and first come first served basis for facilitating transaction of rooftop solar energy through a peer to peer energy transaction platform.

Prosumers can select their consumers

The prosumers have the option to select consumers and offer them a percentage of their excess energy at a specified price or any other mutually negotiated rate. This arrangement needs to be done before any transaction, allowing the prosumers to choose their preferred receipt.

Finalization of trading price/tariff

For the dynamic energy exchange, the prosumers and consumers can interact directly with the peer to peer platform, setting their own prices. The finalised price/cleared price can be the highest price offered by the buyer or the lower price being offered by the seller, an average of buyer and seller price.

Different cases explain how to calculate the final prices under this regime.

Non-availability of excess solar power

In case there is no excess energy available in a peer to peer (P2P) network, the consumers’ energy needs will be met by the discoms. Similarly, if no buyer is available for the P2P then it will be deemed to be sold back to the discoms as per the PPA (Power Purchase Agreement) executed between the discom and consumer.

Compliance norms for P2B participants

The consumers need to have Time of the Day (ToD) compliant energy meter or smart meter at the consumer’s/prosumer’s campus. The KERC norms also said that these P2P participants will not indulge in anti-competitive practices such as price fixing or market sharing or gaming to create negative impact in the financial interest of the discoms.

Role of P2P platform service provider

The P2P platform services providers are mandated to provide training to the discoms and consumers on the P2P solar energy transactions through the platform. The state regulator also mandate these service providers to ensure hassle less power trading among the users where they also need to take care of the cloud and communications. The KERC rules also said that if a meter is installed by the service provider inn series with the discom’s meter and the the meter becomes defective, it should be incumbent upon the service providers to replace the meter within 24 hours.

Role of discoms 

The rules said that in case the discom is under outage, no penal imposition will be made on the P2P prosumer or the consumers for the failure to transact as per the commitments.

Implementation and reporting

The rules said that the discoms need to adopt a transparent and uniform procedure for enabling the consumers for the transactions duly indicating time frame for each of the activities. It said that within 15 days of submission of registration, officers of the discoms and service providers will jointly check the compatibility of P2P participants system for the readiness of P2P exchange. 

Energy accounting

The KERC rules said that the billing cycle of P2P platform should be in sync with the billing cycle of the discoms. It said that the discom and the service provider may mutually decide the modalities of settlement if the billing cycles differ.