Petition of the DERC (Net Metering for Renewable Energy) Regulations and (Peer to Peer Energy Transaction) Guidelines 2024 – EQ

Summary:

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## 1. PETITION OVERVIEW

**Petitioner**: BSES Rajdhani Power Ltd. (BRPL)
**Filed On**: 16.01.2026
**Legal Basis**: Sections 86(1)(c), 86(1)(e), 86(1)(k) of Electricity Act, 2003; DERC Net Metering Regulations, 2014; DERC P2P Guidelines, 2024

**Primary Prayers**:
– Guidance on alignment of DERC P2P Guidelines (2024) with UPERC P2P Guidelines (2023)
– Approval of mechanism for **inter-state and intra-state P2P green energy trading pilot project**

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## 2. BACKGROUND & CONTEXT

### 2.1 Policy & Regulatory Framework
| **Instrument** | **Relevance** |
|—————|—————|
| **Delhi Solar Energy Policy, 2023** | Vision for solar accessibility & innovative models; income generation avenues |
| **DERC P2P Guidelines, 2024** | Existing framework for P2P transactions within same Discom (NCT of Delhi) |
| **UPERC P2P Guidelines, 2023** | Blockchain-based P2P framework; reference for alignment |
| **India Energy Stack (IES) Initiative** | MoP task force (27.06.2025); REC Ltd. as Nodal Agency; Unified Energy Interface (UEI) architecture |
| **IES Strategy 0.2 & Architecture 0.2** | Released 17.12.2025; envisages P2P green energy trading as key use case |

### 2.2 Pilot Project Evolution
– **Concept Note**: Submitted by India Smart Grid Forum (ISGF) to REC; approved by MoP
– **Original Plan**: Phase 1 – PVVNL (UP) & TPDDL (Delhi); Phase 2 – BRPL & DHBVN
– **Revised Plan**: BRPL included in **Phase 1** (Fast Track by 15.02.2026)
– **Current Status**: REC invited BRPL for Winroom-1 session (19.01.2026, Bengaluru)

**Pilot Participants**:
– **Uttar Pradesh**: Pashchimancal Vidyut Vitran Nigam Ltd. (PVVNL)
– **Delhi**: Tata Power Delhi Distribution Ltd. (TPDDL) & BSES Rajdhani Power Ltd. (BRPL)
– **Phase 2 (3-6 months post Phase 1)**: Dakshin Haryana Bijli Vitran Nigam (DHBVN)

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## 3. KEY REGULATORY OBSERVATIONS BY DERC

### 3.1 Scope of Existing DERC P2P Guidelines
– Currently applicable **only to P2P transactions within the same Discom** in NCT of Delhi
– Do **not** cover:
– **Intra-state Discom P2P** (between two Discoms within Delhi)
– **Inter-state Discom P2P** (Delhi–UP transactions)
– Guidelines **never challenged** by Discoms since issuance (24.06.2024)

### 3.2 Jurisdictional Clarification
| **Matter** | **Jurisdiction** | **Action** |
|———–|—————–|————|
| Waiver of ISTS charges, NLDC/RLDC charges, Open Access charges, Scheduling charges | **CERC** | Petitioner at liberty to approach CERC |
| All other P2P regulatory aspects (wheeling, transaction charges, settlement, RPO, etc.) | **DERC** | Addressed in this Order |

### 3.3 Pilot Period
– **Duration**: **Up to six months**
– Applicable only for pilot implementation; post-pilot framework to be reviewed separately

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## 4. COMPARATIVE ANALYSIS: DERC vs. UPERC GUIDELINES – APPROVED DEVIATIONS

| **S.No.** | **Parameter** | **UPERC Guidelines** | **DERC Guidelines (Existing)** | **DERC Order – Pilot Approval** |
|———-|—————|———————|——————————-|——————————-|
| **1** | **Transaction Charges** | ₹0.42/kWh (incl. GST) – shared equally by buyer & seller | To be approved by DERC | **₹0.42/kWh (incl. GST)** – shared equally by prosumer & consumer; **allowed for intra-state & inter-state P2P** |
| **2** | **Wheeling Charges** | ₹1.01/kWh (paid by buyer) | Nil (within same Discom) | **Nil for intra-Discom, intra-state, and inter-state (up to Delhi territory)**; UP portion governed by UPERC |
| **3** | **Network / Open Access Charges** | Complete waiver of wheeling, CSS, additional surcharge | Not applicable under existing DERC P2P | **Not accepted** – No wheeling/network charges for intra-state/inter-state P2P |
| **4** | **Settlement & Billing** | Integrated with Discom billing; priority settlement | Integrated with Discom billing; priority settlement | **DERC P2P Guidelines to apply**; Petitioner & PVVNL to subsume settlement in existing billing systems; **priority settlement mandated** |
| **5** | **RPO Treatment** | Counts towards Discom RPO | Counts towards Discom RPO | **DERC P2P Guidelines, Clause 13 to apply** |
| **6** | **Time Block for Transaction** | Day-ahead scheduling by 17:00 hrs; intraday allowed | No time block consideration; full day transaction 6am–6pm | **Petitioner & PVVNL to devise uniform Time Block**; to be informed to DERC |
| **7** | **Restriction on Energy Trade (CUF)** | No restriction | 20% CUF of installed RE capacity per day | **Relaxed for pilot** – Prosumers can transact without 20% CUF limitation |
| **8** | **Under-Injection Penalty** | Prosumer pays difference between tariff & P2P price | Payment by prosumer equal to shortfall | **Waived for pilot period** (subject to PVVNL/UPERC concurrence) |
| **9** | **Under-Drawl Penalty** | Consumer pays full committed P2P energy + additional payment | No explicit provision | **Waived for pilot period** (subject to PVVNL/UPERC concurrence) |
| **10** | **Registration Timelines** | 15+5+5 days structure | 15+15 days structure | **DERC P2G Guidelines to apply** – registration timelines unchanged |
| **11** | **Payment Priority Order** | Explicit ordered priority | Simple & explicit | **DERC P2P Guidelines to apply** |
| **12** | **Discom Capex for Network Augmentation** | Not expressly provided | ARR pass-through for schemes up to 31.03.2027 | **DERC P2P Guidelines to apply** – deviation not allowed |

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## 5. APPROVED MECHANISM – SUMMARY OF DIRECTIVES

### 5.1 Transaction Charges ✅ **Approved**
– **Rate**: ₹0.42/kWh (inclusive of GST)
– **Sharing**: ₹0.21/kWh each – **Prosumer (Seller)** and **Consumer (Buyer)**
– **Applicability**:
– Within same Discom (BRPL)
– Intra-state Discom P2P (BRPL ↔ TPDDL)
– Inter-state Discom P2P (BRPL ↔ PVVNL)
– **Recovery**: Through respective Discom’s billing & settlement system
– **Financial Treatment**: Non-tariff income – adjusted in ARR/True-up
– **Post-Pilot**: To be reviewed & determined by DERC based on competition & prudence

### 5.2 Wheeling Charges ❌ **Not Approved**
– **Intra-Discom & Intra-State**: **Nil** (existing DERC P2P Guidelines upheld)
– **Inter-State (Delhi territory)**: **Nil** – Petitioner cannot levy wheeling charges
– **Inter-State (UP territory)**: Governed by **UPERC regulations** – beyond DERC jurisdiction
– **Rationale**:
– No physical wheeling of energy – only digital settlement
– Wheeling charges already recovered through approved tariffs
– Additional levy would discourage P2P participation
– Claim for wheeling charges as “billing/settlement fee” is devoid of basis (already covered under transaction charges)

### 5.3 Network / Open Access Charges ❌ **Not Accepted**
– Not applicable for intra-Discom, intra-state, or inter-state P2P transactions
– UPERC also does not levy these charges
– Petitioner’s claim at Sr. No. 10 of table **rejected**

### 5.4 Settlement & Billing ✅ **DERC Guidelines to Apply**
– **Intra-State Discom P2P**:
– Petitioner & TPDDL to devise claim & settlement mechanism within existing billing systems
– **Priority settlement** over regular electricity supply billing
– **Inter-State Discom P2P**:
– Petitioner & PVVNL to integrate settlement into existing billing systems
– No independent out-of-system settlement permitted
– **Priority settlement** mandated

### 5.5 RPO Treatment ✅ **DERC Guidelines, Clause 13**
– P2P transactions count towards **Discom RPO**
– No change from existing framework

### 5.6 Time Block for Inter-State P2P ⏸️ **To be Devised**
– Petitioner & PVVNL to develop **uniform Time Block mechanism**
– To be informed to DERC upon consensus

### 5.7 CUF Restriction ✅ **Relaxed for Pilot**
– **20% CUF cap removed** for solar prosumers
– Prosumers can transact **without any limitation** on generation/sale quantum
– Aligned with UPERC Guidelines

### 5.8 Under-Injection & Under-Drawl Penalties ✅ **Waived for Pilot**
– No penalty for:
– Prosumer’s under-injection (shortfall in committed supply)
– Consumer’s under-drawl (lower off-take than pledged)
– **Condition**: Petitioner to ensure **PVVNL also waives penalties** during pilot period
– **Post-Pilot**: Mandatory to put in place **uniform penalty mechanism** to prevent misuse/exploitation

### 5.9 Registration Timelines ❌ **No Change**
– Existing DERC P2P Guidelines **15+15 day structure** to be followed
– Petitioner’s request to adopt UPERC’s 15+5+5 structure **rejected**

### 5.10 Payment Priority Order ❌ **No Change**
– Existing DERC P2P Guidelines to apply
– Simple & explicit – no deviation required

### 5.11 Discom Capex for Network Augmentation ❌ **No Change**
– Existing DERC P2P Guidelines (ARR pass-through upto 31.03.2027) to apply
– Deviation **not allowed** for pilot period

### 5.12 Waiver of Inter-State Power Trading Charges ⚠️ **Refer to CERC**
– ISTS Transmission Charges & Losses
– NLDC/RLDC System Operation Charges
– SLDC Charges
– Open Access Charges
– Scheduling Charges
– **DERC has no jurisdiction** – Petitioner at liberty to approach CERC

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