Draft rules allow energy storage systems to operate independently or with grids

The Ministry of Power has released draft amendments to Rule 18 of the Electricity Rules, 2005 clarifying how Energy Storage Systems (ESS) can be used in India’s power sector.

The draft gives developers, utilities, and consumers more flexibility. ESS will be allowed to function either on their own or as part of generation, transmission, or distribution systems.

Developers or owners—whether they are generating companies, licensees, consumers, or independent providers—can sell, lease, or rent out storage space to utilities or load dispatch centers. The legal status of the ESS will depend on who owns it. This is expected to bring clarity for operations and scheduling.

The government has opened the draft for public input. Stakeholders like state governments, regulators, and industry associations can send comments by July 10, 2025.