The Ministry of Power has published the Electricity (Amendment) Rules, 2025, to further modify the Electricity Rules, 2005. These amendments primarily focus on providing a clear regulatory framework for the development, ownership, and utilization of Energy Storage Systems (ESS) within India’s electricity grid. The new rules came into force upon their publication in the Official Gazette on September 19, 2025.
The following key changes have been made to Rule 18 of the Electricity Rules, 2005:
1. Utilization of Energy Storage Systems
The new sub-rule (2) clarifies the flexibility in how an ESS must be utilized:
The Energy Storage System is permitted to be used either as an independent energy storage system or as an integrated part of generation, transmission, or distribution infrastructure.
2. Ownership and Legal Status of Energy Storage Systems
The amendments in sub-rules (4) and (5) broadly expand the list of entities permitted to develop and operate ESS and grant flexibility in utilizing the storage capacity.
The Energy Storage System may be developed, owned, leased, or operated by a generating company, a transmission licensee, a distribution licensee, a consumer, a system operator, or an independent energy storage service provider.
Legal Status:
- An ESS that is owned and operated by, and co-located with a generating station, transmission licensee, distribution licensee, or consumer will hold the same legal status as the owner.
- If the ESS is owned and operated by one of these entities but is not co-located with them, the legal status remains that of the owner. However, for the purposes of scheduling and dispatch and other operational matters, it will be treated at par with a separate storage element.
The developer or owner of the Energy Storage System is granted the option to sell, lease, or rent out the storage capacity (in whole or in part) to any consumer, utility (generation, transmission, or distribution), a Load Despatch Centre, or any other person.