Delhi, UP Consumers May Be Allowed to Buy, Sell Electricity: All You Need to Know

The government is planning to launch a facility that will enable customers to directly buy and sell electricity among themselves with the amount adjusted in their monthly power bills.

Electricity users and customers who also produce power using renewable energy sources, like rooftop solar, will be able to trade excess renewable energy directly with other consumers, including across state lines, thanks to peer-to-peer (P2P) energy trading under the India Energy Stack (IES). To guarantee a safe, verifiable and scalable P2P energy network, the transactions will be carried out via a trust-based digital framework.

Who Can Participate

The buyer must have a rooftop solar plant and a net meter to trade excess energy, even though they will need a smart electricity meter. Through a mobile application, the two parties will be able to finalise the transaction and negotiate prices. According to officials, P2P energy trades will be represented as cumulative adjustments in the discom billing system for both buyers and sellers, and customers will still receive their regular electricity bills. They went on to say that the system will make it easier for prosumers to access excess electricity and that buyers will be able to purchase power at lower prices than distribution companies charge.

P2P trading is part of the IES being developed by REC Limited and is expected to be launched during the IndiaAI Summit later this month. Initially, consumers in south, southwest, west, north and northwest Delhi, and parts of western Uttar Pradesh, will be able to trade electricity as the facility will be rolled out by three distribution companies—BSES Rajdhani Power Limited, Tata Power-Delhi Distribution Limited and Paschimanchal Vidyut Vitran Nigam Limited. Eventually, all discoms are expected to offer the facility.

The three utilities together have about 1.25 crore consumers, but the pilot will begin with around 1,000 consumers in each discom area. PVVNL managing director Raveesh Gupta told ET Energyworld consumers from varied backgrounds are being identified for the pilot. “Our teams are talking to farmers, small businessmen and domestic users to onboard them for P2P energy trading,” he added.

Grid Stability Implications

According to a study published in the MDPI website, peer-to-peer energy trading can improve local grid resilience by balancing supply and demand within communities, lowering transmission losses and reducing reliance on distant generation. The research indicates that when combined with intelligent controls, P2P markets can reduce peak demand and enhance the use of distributed energy resources. Distribution networks may experience less strain as a result, enabling more effective grid operation.