DERC Issues Peer-to-Peer Energy Transaction Guidelines 2024

DERC Issues Peer-to-Peer Energy Transaction Guidelines 2024

The Delhi Electricity Regulatory Commission (DERC) recently released Peer-to-Peer Energy Transaction Guidelines 2024. These guidelines aim to foster the use of renewable energy and provide additional income opportunities for prosumers. By leveraging innovative technologies and ensuring consumer savings, DERC has sought to enable prosumers and eligible consumers to securely and reliably buy and sell electricity through peer-to-peer transactions.

However, it is worth pointing out that Delhi continues to have an underwhelming record on actual execution of what seems to be progressive renewable policies so far. The state has underachieved on every solar target it has set itself since 2015, and innovative options like peer to peer sharing or VPPs have not really taken off yet.  

The DERC guidelines apply to prosumers (excluding ground-mounted projects) and consumers choosing to transact energy among themselves. Transactions can occur via an online platform provided by service providers or through the distribution licensee within their supply area.

Under the policy, prosumers and consumers engaged in peer-to-peer metering arrangements with a capacity of up to 200 kW are eligible. Prosumers can install renewable energy systems up to 500% of their sanctioned load for peer-to-peer transactions.

Additionally, the policy outlines that consumers and prosumers may opt for either virtual net metering, group net metering, or peer-to-peer metering at any given time. They have the flexibility to switch from one arrangement to another once per financial year, with consumers opting for peer-to-peer transactions automatically terminating their previous net metering agreements.

For peer-to-peer transactions to commence, prosumers and consumers must install Time of Day (ToD) compliant energy meters or smart meters. If not already in place, these meters must be installed to facilitate transactions, with procedures and charges governed by DERC’s Supply Code and Performance Standards Regulations, 2017, and subsequent amendments.

Registration for peer-to-peer transactions involves submitting basic information online or offline to the distribution licensee or service provider. Prosumers with renewable energy systems beyond 100% of their sanctioned load must undergo network compatibility checks by the distribution licensee within 15 days of form submission. In cases of rejection, applicants are notified within 5 days along with reasons for the decision.

These guidelines mark a significant step towards promoting renewable energy adoption and enhancing consumer choice in Delhi’s electricity market, though actual implementation will take some time, as discoms and other service providers build a market case for it. Firms like SolShare in Bangladesh have achieved significant success with such peer to peer energy sharing networks.