An ambitious plan to grow solar generation to 6,000 MW by 2025, could see thousands of households and businesses in Delhi powered by renewable energy (RE). Meanwhile, Powerledger is poised and ready, with its peer-to-peer (P2P) technology, to enable the trading of the excess solar energy generated.
The plan, outlined in a draft energy policy by the Dialogue and Development Commission of Delhi (DDC), sees the mass installation of solar PVs across the city. The annual share of solar generation, within total electricity demand, will grow from 2% to 25% by 2025.
So, how will this bold plan be delivered? What incentives will there be for consumers to purchase more PVs? And what can Powerledger offer to support such massive growth of solar generation, without compromising grid stability?
Household owners, communities and C&I customers will be able to receive a Generation Based Incentive (GBI). This monetary incentive will last for 5 years, variable on the size of the installed PV and the type of customer. The GBI can be anywhere from 1 - 3 Rupees for every kWh generated.
Residential customers will receive a capital subsidy for mounting PV to their homes; starting from 2,000 Rupees per kW and up to a maximum of 10,000 Rupees. In addition to this, the government does not plan to levy taxes and duties against any of the solar energy that is generated from rooftop systems.
It gets better.
To roll out the installation of solar PVs across inner city areas at such speed, initial capital investments by consumers into PV systems can be waived. In place of initial capital expenditure, consumers can enter formal agreements with their electricity distribution company to receive net metering benefits.
If rooftop space is limited, consumers can invest in large solar PV installed by developers on empty land in the area. This allows consumers to be co-owners in a local solar farm and reap the benefits from the solar energy generated.
Additional supply and battery storage.
To raise their share of additional solar energy, distribution companies will be able to procure solar energy from outside of the Delhi area. Whilst battery-based energy storage systems will provide storage of all RE generated. This will create a path towards the 24/7 supply of RE.
Allowance for Peer-to-Peer (P2P) energy trading.
Up until now, regulation within Delhi did not allow for mass deployment of peer-to-peer energy trading. This new draft policy makes allowances for any generator of solar energy to trade their excess energy, in real-time.
Over the last few years, Powerledger has partnered with India Smart Grid Forum (ISGF), Tata Power DDL and BSES Rajdhani Power Limited in P2P projects within Delhi. The projects demonstrated how Powerledger’s blockchain-enabled technology can facilitate the trading of RE across the grid. In doing so, communities are able to share their energy within the local area, trade their solar energy for a better price (than a feed-in-tariff) and place less demand on traditional sources of energy. Real-time trading allows users to match the time of place of RE generated to the time and place it is needed. In doing so, this relieves congestion on the grid, all the while increasing the share of RE in the energy mix of the grid.
The Delhi government has shared the drafted energy policy and allowed 30 days for public comment before it is handed to the cabinet for final approval. Meanwhile, in the state of Uttar Pradesh (UP), the Uttar Pradesh Electricity Regulatory Commission (UPERC) has already issued a tariff order, directing all the utilities in the state of UP to implement P2P energy trading.
These changes led by local authorities in both Delhi and Uttar Pradesh will ensure that India becomes a world leader in the space of RE generation and P2P trading. Powerledger is proud to continue its relationship with its partners across India, as P2P energy trading becomes a major solution to increase RE penetration and achieve local and national RE targets.
Sign up for our newsletter - full of great insights and market updates.