Delhi Electricity Regulatory Commission Greenlights Peer-to-Peer Energy Trading Pilot
In a landmark decision, the Delhi Electricity Regulatory Commission (DERC) has officially approved a pioneering initiative that allows consumers to engage in peer-to-peer electricity trading. This move empowers prosumers—individuals who generate their own power through renewable sources like rooftop solar—to buy and sell surplus energy, effectively transforming residential and commercial rooftops into decentralized mini power plants.
Pilot Project Details and Launch Timeline
The pilot project will be spearheaded by Tata Power Delhi Distribution Ltd and BSES Rajdhani Power Ltd, with plans to launch this month in north and south Delhi. It is expected to cover approximately 1,000 consumers in each zone, targeting those equipped with smart meters. Participation requires verification by the discoms and onboarding through an approved digital trading platform.
Officials have indicated that the initiative will facilitate trading not only within the two discoms but also between Delhi and Uttar Pradesh, as Purvanchal Vidyut Vitaran Nigam Limited is also involved. After a thorough evaluation of the pilot's performance, the project may be expanded citywide, enabling all eligible consumers to trade energy as a commodity.
Technological and Regulatory Innovations
Unlike the traditional model where surplus power is sold back to a discom at a fixed rate, this peer-to-peer energy trading system allows buyers and sellers to mutually agree on transaction prices via a secure, blockchain-based digital platform. The discoms will showcase this pilot at an upcoming AI summit at Bharat Mandapam from February 16 to 20.
To encourage widespread adoption, DERC has relaxed several technical restrictions, most notably lifting the 20% capacity utilisation factor cap. This change permits prosumers to sell their entire surplus generation. Additionally, wheeling charges, cross-subsidy surcharges, and other additional fees have been waived within Delhi's territorial limits for the duration of the pilot.
Economic and Environmental Impact
The trading will be facilitated by a digital energy grid powered by India Energy Stack, with a nominal transaction fee of 42 paise per unit (kWh), split equally between the buyer and seller. Discoms will continue to manage 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 through a mobile app, and trades will appear as cumulative adjustments in regular bills. This system simplifies the sale of surplus electricity for prosumers and offers buyers access to power at rates potentially lower than standard discom charges.
Growth in Renewable Energy Adoption
Delhi government data highlights a significant rise in renewable power generation over recent years, including solar and non-solar sources. From 129 million units in 2021-22, it increased to 274 million units in 2022-23 and 1,518 million units in 2023-24, though it decreased to 1,288 million units in 2024-25. This trend reflects Delhi's growing adoption of rooftop solar and decentralized solar projects, contributing to a cleaner and more sustainable electricity supply.
The objective of this initiative is to create a consumer-centric, digitally governed energy ecosystem that promotes efficiency and sustainability. By leveraging advanced technology and regulatory support, Delhi aims to set a precedent for innovative energy solutions in urban India.
