DERC Introduces Guidelines For Peer-To-Peer (P2P) Renewable Energy Transactions And Advanced Metering Infrastructure

Posted On - 2 August, 2024 • By - King Stubb & Kasiva

Introduction

The Delhi Electricity Regulatory Commission (DERC) has introduced the Peer-to-Peer (P2P) Energy Transaction Guidelines, 2024, to foster the use of renewable energy and create new income streams for prosumers.[1] These guidelines allow prosumers and consumers to directly trade electricity through a secure online platform.

Explanation (Key Points)

  1. Eligibility: These guidelines apply to prosumers (excluding ground-mounted projects) and consumers who choose to trade energy through an online platform within the DERC’s area of supply. The sanctioned load/contract demand of participants should not exceed 200 kW, and the prosumer’s renewable energy system capacity should be limited to 500% of their sanctioned load. Consumers and prosumers can switch between virtual net metering, group net metering, and P2P energy transactions once a year.
  2. Metering Arrangement: Participants must have a Time of Day (ToD) compliant energy meter or smart meter to participate in P2P transactions. The service provider will use meter data for billing and reconciliation.
  3. Registration Process: Consumers and prosumers can register online or offline by submitting the required information to the Distribution Licensee or Service Provider. The Distribution Licensee will verify network compatibility and respond within a specified timeframe.
  4. Scheduling and Billing: Participants must submit transaction schedules at least eight time blocks in advance. The billing cycle aligns with the Distribution Licensee’s cycle, and bills include charges for energy, fixed charges, PPAC, RA surcharge, pension trust surcharge, electricity tax, and transaction charges.
  5. Transaction Charges: Delhi DISCOMs will petition the DERC to determine transaction charges for P2P transactions.
  6. Energy Accounting and Billing: The Service Provider or DISCOM will use meter data to calculate actual energy generation and consumption for billing. Wheeling, cross-subsidy, and additional surcharges are not applicable. Charges for differences between scheduled and actual transactions, energy charges, fixed charges, PPAC, RA surcharge, pension trust surcharge, electricity tax, mutually agreed transaction prices, and transaction charges will be included in the bill.
  7. Default in Payment: Participants must clear dues by the due date, or they will be deactivated from the P2P platform. Defaults in payment for energy supplied by the Distribution Licensee will result in actions as per DERC regulations.
  8. Dispute Resolution: Billing disputes will be addressed by the Consumer Grievance Redressal Forum (CGRF) according to DERC regulations.
  9. Other Charges and RPO Compliance: Renewable energy systems under P2P transactions are exempt from wheeling, banking, cross-subsidy, and other charges until March 31, 2027. The Distribution Licensee will cover capital expenditure for service line and network augmentation, passing it through in the Aggregate Revenue Requirement (ARR). The generated electricity qualifies for Renewable Purchase Obligation (RPO) compliance if the consumer is not an obligated entity.

Conclusion

The DERC (Peer to Peer Energy Transaction) Guidelines, 2024, aim to establish a structured framework for P2P energy trading in Delhi, promoting renewable energy adoption and offering financial advantages to both prosumers and consumers. These guidelines comprehensively cover various aspects of P2P transactions, including eligibility criteria, metering arrangements, registration procedures, scheduling, billing, dispute resolution, and the applicability of other charges. By enabling direct energy trading, these guidelines contribute to a more decentralized and sustainable energy system.

[1]https://www.derc.gov.in/sites/default/files/DERC%20Peer%20to%20Peer%20Energy%20Transaction%20Guidelines%202024%20-%2024.06.2024.pdf