Delhi Approves Peer-to-Peer Electricity Trading Framework for Consumers
In a transformative step for urban energy management, the Delhi Electricity Regulatory Commission (DERC) has greenlit a framework that empowers consumers to trade electricity directly with one another. This initiative marks a significant shift from traditional power distribution models, turning everyday users into active participants in the energy market.
Pilot Project Details and Rollout Plans
The order paves the way for Tata Power Delhi Distribution Ltd and BSES Rajdhani Power Ltd to launch a pilot project focused on peer-to-peer energy trading. The first phase is set to commence this month in north and south Delhi, targeting approximately 1,000 consumers in each zone. An official highlighted that trading will occur not only within these two discoms but also extend to Uttar Pradesh, with Purvanchal Vidyut Vitaran Nigam Limited joining the effort.
A broader rollout is planned through three utilities: BSES Rajdhani Power Limited, Tata Power-Delhi Distribution Limited, and Paschimanchal Vidyut Vitran Nigam Limited. This expansion will enable participation from consumers in south, southwest, west, north, and northwest Delhi, as well as parts of western Uttar Pradesh. Collectively, these companies serve around 1.25 crore consumers, though the pilot will start with a limited group of roughly 1,000 users per discom area.
PVVNL managing director Raveesh Gupta emphasized that teams are engaging with diverse groups, including farmers, small businessmen, and domestic users, to onboard them for the peer-to-peer energy trading program.
Eligibility and Participation Requirements
The program primarily targets smart meter users. Buyers must have a smart electricity meter, while sellers need a rooftop solar plant equipped with a net meter. Before joining, consumers will undergo verification by their respective discoms and be onboarded through approved digital trading platforms.
A Verified Credential will serve as the digital identity for each participant, confirming authenticity and eligibility to maintain system integrity and secure transactions.
How the Trading Mechanism Operates
Under the peer-to-peer model, buyers and sellers will negotiate prices directly via a mobile application. Transactions will run on a secure, blockchain-enabled framework under the India Energy Stack, ensuring verifiability and scalability. Unlike the conventional setup where surplus electricity is sold back to a discom at a fixed tariff, this system allows mutual rate determination.
Officials noted that consumers will continue to receive standard electricity bills, with peer-to-peer trades reflected as cumulative adjustments within the billing system. While discoms remain responsible for physical electricity supply, the financial settlement changes: energy bought or sold through the platform will be integrated into monthly bills. This arrangement aims to help prosumers monetize extra generation and enable buyers to access electricity at prices below prevailing discom tariffs.
Charges, Fees, and Regulatory Relaxations
To enhance the pilot's appeal, DERC has waived wheeling charges, cross-subsidy surcharges, and other additional levies within Delhi's territorial limits for the trial period. A transaction fee of 42 paise per unit has been approved, to be shared equally between buyer and seller.
In a key relaxation, the regulator has removed the earlier 20% capacity utilisation factor cap, allowing prosumers to sell their entire surplus output. The goal is to foster a consumer-centric, digitally governed energy ecosystem.
Platform Development and Consumer Access
REC Limited, which is developing the India Energy Stack, stated that the platform will manage matching, accounting, and settlements. REC executive director Prince Dhawan explained, The platform will read data from a central ledger where the discom will upload actual consumption and export, and then settle the final transaction between peers. Some trading platforms will also have inbuilt AI agents to assist customers in the trading process.
He added that discoms can apply wheeling and transmission charges directly in bills since they can access the ledger, with the platform displaying these charges upfront to consumers.
A Tata Power-DDL spokesperson outlined access procedures: Customers will need to download one of the applications developed by trading platform service providers based on their preference. Details on user interfaces, whether via a dedicated app or web-based access, will be shared during onboarding by the respective discoms.
