The Union Ministry of Power has released a draft of proposed amendments to Rule 18 of the Electricity Rules, 2005, specifically addressing Energy Storage Systems (ESS). The Ministry is seeking comments from a wide array of stakeholders on these changes within 30 days, by July 10, 2025.
The proposed “Electricity (Amendment) Rules, 2025” aim to clarify and update provisions related to the development, operation, and utilization of energy storage within India’s power sector. These amendments are being made in exercise of powers conferred by Section 176 of the Electricity Act, 2003.
Key proposed changes to Rule 18 include:
- Energy Storage Systems can now be utilized either as independent systems or as integral parts of generation, transmission, or distribution infrastructure.
- The draft rules permit a diverse set of entities to develop, own, lease, or operate ESS, including generating companies, transmission licensees, distribution licensees, consumers, system operators, or independent energy storage service providers.
- An ESS will generally hold the same legal status as its owner. Importantly, even if an ESS is not co-located with its owner (e.g., a generating station or distribution licensee), its legal status remains with the owner, though for scheduling and dispatch, it will be treated as a separate storage element.
- Developers or owners of ESS will have the option to sell, lease, or rent out their storage space, either wholly or in part, to any consumer or utility involved in generation, transmission, or distribution, or even to a Load Despatch Centre.
The draft amendments have been circulated for consultation to key stakeholders including the Ministry of New and Renewable Energy, Ministry of MSME, Central Electricity Authority, Central Electricity Regulatory Commission, various State Governments and Electricity Regulatory Commissions, PSUs under the Ministry of Power, DISCOMs/GENCOs, and prominent industry associations such as FICCI, CII, PHDCCI, ASSOCHAM, Indian Wind Power Association, Indian Wind Turbine Manufacturers Association, National Solar Energy Federation of India, and Solar Power Developers Association.
Comments on the proposed amendments can be submitted to the Ministry of Power via email at rri-mop@gov.in.
