Power Ministry notifies new rules for energy storage systems

The Ministry of Power has notified new regulations for Energy Storage Systems (ESS) through an amendment to the Electricity Rules, 2005. The rules, published in the Official Gazette under notification G.S.R. 688(E), took effect immediately.

The amendment to Rule 18 allows ESS to function either as standalone facilities or as part of generation, transmission, or distribution networks. A range of entities can develop, own, lease, or operate such systems, including generating companies, transmission and distribution licensees, consumers, system operators, and independent storage service providers.

Where ESS is co-located with a generating station or utility, its legal status will be the same as that of the owner. If an ESS is owned and operated by a utility but located separately, ownership remains with the utility, although for scheduling and dispatch it will be treated as a distinct storage element.

The revised rules also enable ESS developers and owners to sell, lease, or rent out storage capacity, in full or in part, to consumers, utilities, Load Despatch Centres, or other buyers.