Peer-to-peer solar power trade likely to be a reality in state soon

Karnataka power regulatory body releases draft rules

Bengaluru: If you are someone who wants to run the chores using green energy but have no option to install a rooftop solar power system, there is good news in the offing. 

In a big push for the use of solar energy, Karnataka will soon allow peer-to-peer trading of solar power produced through rooftop photovoltaic systems. The Karnataka Electricity Regulatory Commission (KERC) has published draft guidelines to put in place a system that could allow such trading. While peer-to-peer solar energy trading using a blockchain-based technology is increasingly becoming popular in the country, the producers in Karnataka could not venture into peer-to-peer trading owing to a lack of guidelines. 

While the installation of solar rooftop systems was said to be declining across the state owing to the ‘Gruha Jyothi’ free power scheme, this new power sharing model is expected to give a boost to the sector since it could open up the market for new customers. 

Once the guidelines come into force, owners who have installed solar rooftop systems in their houses and establishments can sell the excess power to other consumers at a price negotiated by the producer and the consumer. So far, the users of solar rooftops could sell the excess power only to the Electricity Supply Companies (ESCOMs). “It is aimed to benefit small consumers who are willing to adopt green energy. This new technology will also help producers earn more,” a senior official from KERC told DH.  

Peer-to-peer trading comes with a host of advantages. While on one hand, it could promote the use of clean energy, on the other hand, it could also increase the state’s power production and provide better returns to those adopting clean energy. “The peer-to-peer trading model helps those who do not have space to install solar power generation systems but want to adopt green energy. The demand for green energy will increase drastically once the system falls in place,” a researcher from World Resources India (WRI) said. 

Significant for sustainable energy systems

KERC in its draft guidelines named as ‘KERC (Implementation of Peer to Peer Solar Energy through Block-Chain based Platform) Regulations, 2024’ noted that ‘peer-to-peer transactions are likely to play a significant role in shaping the future of sustainable energy systems’.

The guidelines, which fixes the responsibility of every stakeholder, suggest that both the producer and the consumer should register with the distribution licensee (ESCOMs) and pay network charges for the use of infrastructure set up by the supply company. “The peer-to-peer solar transactions offer various benefits, the success of which depends on regulatory support, technological advancements, and widespread adoption within communities,” the draft said. 

The guidelines also delve into various scenarios and actions to be taken in cases of over-injection and under-injection of power by the producers, and overuse and underuse of power by the consumers. The service provider is held responsible for creating awareness and training the producers, consumers, and ESCOMs regarding the functioning of peer-to-peer platforms. “The service provider shall ensure that the systems installed by it for facilitating peer-to-peer exchange do not disrupt distribution licensee's system and shall ensure that there is a seamless settlement between the peer-to-peer partners,” the draft said. 

The public can raise objections or provide suggestions to KERC till February 11.