Delhi’s Net Metering Regulations to Allow Electricity Trading Using Blockchain

Transactions to be exempted from wheeling, banking, cross-subsidy, and other charges


The Delhi Electricity Regulatory Commission (DERC) has proposed to amend the state’s net metering regulations for renewable energy to provide greater flexibility to prosumers and eligible consumers by enabling peer-to-peer transactions through blockchain or other technologies.

The proposed amendments seek to enhance secure and reliable electricity trading while ensuring proper accounting and billing by power distribution companies (DISCOMs).

The proposed Delhi Electricity Regulatory Commission (Net Metering for Renewable Energy) (First Amendment) Regulations, 2023, include the addition of new definitions to the existing regulations.

Firstly, “Blockchain” is defined as a specialized technology that facilitates peer-to-peer transaction platforms by utilizing decentralized storage to record all transaction data.

Secondly, “Peer-to-Peer Transaction” is defined as a transaction based on an interconnected platform acting as a marketplace where consumers and prosumers can trade electricity using blockchain or any other suitable technology.

To promote peer-to-peer transactions, the proposed amendment will hold DISCOMs responsible for ensuring proper accounting and billing.

Additionally, it mandates that Delhi DISCOMs file a petition to determine transaction charges/fees, if necessary, to enable seamless implementation of these transactions.

To encourage the uptake of renewable energy systems, the DERC proposes exempting these systems, including those involved in peer-to-peer transactions, from wheeling, banking, cross-subsidy, and other charges until March 31, 2026.

This exemption provides a favorable environment for prosumers and eligible consumers to participate in the peer-to-peer energy market and further incentivizes the adoption of renewable energy.

The proposed amendments also include updates to references of relevant regulations. Notably, the references to the Central Electricity Regulatory Commission’s (CERC) “Deviation Settlement Mechanism and related matters” regulations have been revised to reflect the 2022 version, including any subsequent amendments.

Similarly, references to the Delhi Electricity Supply Code and Performance Standards Regulations of 2007 have been updated to the 2017 version, and references to the DERC’s “Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation” regulations of 2012 have been replaced with the 2021 version.

Last December, the Delhi Government released a draft solar policy that targets 6,000 MW of installed solar capacity in the next three years and envisages a three-fold jump in solar energy share in annual electricity demand to 25% by 2025 from 9%.

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