KERC Introduces New Regulations For Peer-To-Peer Solar Energy Transactions In Karnataka

Introduction

The Karnataka Electricity Regulatory Commission (KERC) has taken a pioneering step in the advancement of solar energy usage with the introduction of new regulations for peer-to-peer (P2P) solar energy transactions. The “KERC Implementation of Peer-to-Peer Solar Energy Transaction Regulations 2024” aims to streamline the processes for consumers to engage in solar rooftop photovoltaic (SRTPV) projects through net or gross metering arrangements. [1]These regulations enable energy transactions via online platforms supported by technologies like blockchain, setting a strong precedent for solar energy innovation in India.

Explanation (Key Points)

The new regulations are effective immediately upon their publication in the official gazette and apply to all distribution licensees and eligible consumers in Karnataka. They must be read in conjunction with existing solar rooftop regulations, specifically the KERC Implementation of Solar Rooftop Photovoltaic Power Plants Regulations, 2016, and other related solar energy directives.

1. Scope and Applicability:
   The regulations are designed for domestic consumers and prosumers (producers and consumers of energy) engaged in solar rooftop projects. These individuals or entities are permitted to use net or gross metering for injecting solar energy into the grid at tariffs determined by KERC. Importantly, the regulations enable the use of P2P energy transaction platforms, allowing prosumers to directly sell excess solar energy to other consumers.
2. Facilitation of P2P Transactions:
   To enable this peer-to-peer exchange of energy, consumers must engage through online platforms provided by registered service providers. These platforms use blockchain technology or similar methods to ensure transparent and secure transactions. Consumers can negotiate prices for excess energy, dynamically adjusting rates based on market conditions such as the highest buyer price or the lowest seller price. If a surplus of energy exists, prosumers can sell it directly to consumers before other transactions occur. In cases where no energy is available on the P2P platform, consumers will rely on the distribution licensee for their energy needs.
3. Metering and Compliance:
   Eligible consumers must install SRTPV plants and compliant smart meters as per the KERC guidelines. The service providers capture data from these smart meters to accurately record transactions for billing and reconciliation. To ensure transparency, distribution licensees are required to offer non-discriminatory access to metering arrangements on a first-come, first-served basis. They must also adhere to a uniform procedure with clearly defined time frames to facilitate consumer participation in the P2P platform.
4. Service Providers and Distribution Licensees:
   Registered service providers are responsible for facilitating the P2P transactions in coordination with the distribution licensees. This collaboration ensures that the infrastructure necessary for these transactions—whether through blockchain or other advanced technologies—operates smoothly. Any issues with the meters provided by the distribution licensee must be promptly addressed, ensuring that participants in P2P transactions are not penalized during power outages or technical issues.
5. Grievance Redressal and Further Directions:
   In the case of grievances, the KERC Consumer Grievance Redressal Regulations will apply, except for disputes falling under Section 86(f) of the Electricity Act, 2003. Additionally, KERC retains the authority to modify or relax provisions of the regulations as needed to address emerging issues or improve the implementation of the P2P energy framework. Distribution licensees are mandated to follow transparent processes and are held to performance standards outlined by KERC, ensuring reliability and fairness in the execution of these new solar energy regulations.

Conclusion

By enabling a P2P framework supported by advanced technology like blockchain, the KERC is fostering a more decentralized, dynamic, and consumer-friendly solar energy market. Prosumers can now actively participate in energy trading, ensuring better utilization of rooftop solar power while promoting greener energy solutions across the state. These regulations are expected to further encourage the adoption of solar energy, streamline metering and billing processes, and enhance energy security for Karnataka’s consumers.

[1] https://kerc.karnataka.gov.in/uploads/media_to_upload1722929304.pdf