Date : 13-June-2025
The draft amendment provides a wider regulatory framework for ESS (Energy Storage Systems)
The Ministry of Power (MoP) has proposed an amendment to the Electricity Rules 2025 to permit the sale, lease, and renting of energy storage systems (ESS). The Ministry invited comments on the draft amendment from stakeholders to be sent by July 10, 2025.
One of the most important changes is in sub-rule (2) of Rule 18. It proposes that Energy Storage Systems may be used either as standalone systems or as a part of power generation, transmission, or distribution infrastructure.
Another proposed change is in sub-rule (4)(a), which broadens the eligibility for developing, owning, leasing, or operating ESS. It states that any generating company, transmission licensee, distribution licensee, consumer, system operator, or independent energy storage service provider can participate in the ESS sector.
Sub-rule (4)(b) explains the legal status of an Energy Storage System. It clearly states that the ESS will have the same legal identity as its owner, regardless of where it is located. Even if the system is not located near a power plant or consumer but is still owned and operated by them, it will carry their legal identity. However, for tasks like scheduling and dispatch, it will be considered as a separate storage element. This clause is important for ensuring better coordination in grid operations.
Sub-rule (5) of the proposed amendments brings in commercial flexibility. It allows the developer or owner of an Energy Storage System to sell, lease, or rent out the entire storage system or any part of it. This can be done to any consumer, utility involved in generation, transmission, or distribution, or even to a Load Despatch Centre.
References:
Power Ministry Proposes Sale, Lease, Renting of Energy Storage Systems