The Uttar Pradesh Electricity Regulatory Commission (UPERC) has extended the approvals and regulatory relaxations granted to Paschimanchal Vidyut Vitran Nigam (PVVNL) for an interstate peer-to-peer (P2P) renewable energy trading pilot until March 31, 2027.

The extension will be deemed effective from August 16, 2026, when the approvals granted under an earlier Commission order expired.

Background

The petitioner, PVVNL, approached the Commission seeking continuation of the approvals and relaxations granted in February 2026.

The Ministry of Power and REC had selected PVVNL as the Uttar Pradesh distribution licensee participating in the interstate P2P pilot.

Regular energy trading under the pilot began in March 2026. However, PVVNL reported two trades in February. Between February and July 2026, 1,164 trades were executed and settled under the pilot. The traded energy was also adjusted in participating consumers’ electricity bills.

Trading activity increased from two transactions in February to 266 in April and 567 in May. It subsequently declined to 288 transactions in June and 37 in July.

PVVNL said the pilot has demonstrated P2P energy trading in a live operational environment, with traded energy accurately reflected in consumers’ billing systems.

According to PVVNL, the pilot project was limited to demonstration, testing, and regulatory learning.

It said that P2P renewable energy has had no material adverse impact on grid security, distribution company revenues, or system operations. It noted that the transactions are carried out within the participating distribution companies’ physical distribution networks without creating parallel infrastructure.

It added that the pilot aimed to evaluate the operational, commercial, legal, and consumer protection aspects of interstate P2P trading and help regulators develop frameworks for its potential expansion.

PVVNL told the Commission that extending the project will provide additional data on consumer participation, billing and settlement mechanisms, and interoperability among utilities, Advanced Metering Infrastructure Service Providers, and digital platforms under the India Energy Stack.

It added that the extension could also provide insights into integrating distributed renewable energy resources, optimizing local energy consumption, and improving grid efficiency.

PVVNL said the pilot could support the development of transparent accounting and settlement processes and an appropriate regulatory framework for the large-scale implementation of P2P energy trading. It could also promote rooftop solar adoption and help states achieve renewable energy transition.

REC, on behalf of the Ministry of Power, also requested an extension to continue the interstate pilot.

Commission Analysis

After examining PVVNL’s submissions and the applicable P2P solar energy trading guidelines and rooftop solar regulations, UPERC approved the extension until March 31, 2027, with retrospective effect from August 16, 2026.

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