Uttar Pradesh has become the first in India and South Asia to launch the block chain-enabled peer to peer (P2P) trading platform for rooftop solar power producers.
Such power producers are also the consumers of solar power.
The Uttar Pradesh Power Corporation Limited (UPPCL) and Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) are hosting the first-of-its-kind pilot project involving energy generated from solar rooftop systems installed on buildings in Lucknow. India Smart Grid Forum along with two other organisations will execute the project.
In 2019, state power regulator Uttar Pradesh Electricity Regulatory Commission had approved a pilot project for transactions of power from rooftop solar systems using block chain-based technology. It had then stated that under this pilot project, government buildings or consumers would carry out peer-to-peer transactions for the trading of rooftop solar power.
The fees for the block chain technology will be recovered in the account rate of return (ARR) of the distribution licensee concerned. By using block chain technology, the participants can transfer funds, settle trades, or vote without seeking the approval of the central certifying authority.
The P2P trading platform’s first 12 participants would comprise nine customers with rooftop solar systems (prosumers) and three customers without rooftop solar systems (net buyers). Identified in consultation with the UPPCL, the participants will engage in mock trading (no money transactions) for the next three months.
The customers have been trained on the block chain platform’s functions and the procedures that need to be followed to participate in the trading activities via online training sessions held by the ISGF.
The pilot project’s results and recommendations will be submitted to the UPPCL and the UPERC for framing of regulations to promote P2P trading of rooftop solar power amongst prosumers and consumers in the state.
To promote innovations and peer-to-peer energy transactions using block chain technology between the rooftop solar prosumers, the state had earlier introduced the concept in its Rooftop Solar PV Grid Interactive Systems Gross/Net Metering) Regulations, 2019 issued in January 2019.
The block chain-based technology has been gaining increasing popularity globally.