Andhra Pradesh Introduces 2025 Draft Regulations for Battery Energy Storage Systems to Enhance Clean Energy Integration

The Andhra Pradesh Electricity Regulatory Commission (APERC) has introduced the draft regulations for the Planning, Procurement, Deployment, and Utilization of Battery Energy Storage Systems (BESS) for 2025. This initiative aims to facilitate the integration of renewable energy into the grid, enhance its stability, and promote the growth of the clean energy sector within the state.

These regulations align with the Electricity Act of 2003 and adhere to guidelines set by the Ministry of Power, Government of India, including those issued on March 11, 2022, and the National Framework for Energy Storage Systems released in August 2023. BESS is now recognized as a crucial component for improving grid flexibility, maintaining frequency and voltage stability, managing peak loads, and delivering ancillary services.

The Government of Andhra Pradesh has already pledged to advance renewable energy through its Integrated Clean Energy Policy, 2024, targeting an addition of over 160 GW of renewable energy capacity along with approximately 25 GWh of BESS installations. This draft regulation aims to establish a comprehensive framework that supports the state’s ambition of becoming a clean energy hub.

Effective from the date of its publication in the Andhra Pradesh Gazette, these regulations apply to all licensees, generating companies, renewable energy developers, aggregators, and service providers involved in BESS within the state. BESS can be developed by distribution or transmission licensees, system operators, generating companies, independent power producers, third-party investors, and aggregators. The systems may be co-located with generation sources, connected to the grid independently, embedded in networks, or installed behind the meter.

For planning and procurement, a minimum project size of 1 MW with a four-hour energy rating is mandated unless deployed at the Distribution Transformer (DTR) level. The selection of locations will be guided by reverse power flow at substations. Licensees must obtain APERC’s approval before procuring BESS, with a preference for co-located systems due to their cost efficiency.

BESS will play a vital role in providing ancillary services, which include frequency regulation, voltage support, spinning reserves, and black start services. Aggregators have the ability to pool resources across various sites to offer services to grid operators and must register with the State Load Despatch Centre (SLDC).

Cost recovery for BESS owned by licensees will be managed through tariff orders issued by the Commission, while competitively procured services will utilize market mechanisms. The systems are required to comply with technical standards approved by relevant authorities such as the Central Electricity Authority (CEA) and the Ministry of New and Renewable Energy (MNRE), with periodic data submissions mandated. Additionally, cybersecurity, safety, and environmental management practices must adhere to the applicable regulatory norms.

Distribution licensees and APTRANSCO are tasked with identifying potential BESS locations and incorporating BESS into their planning and investment filings. The APSLDC will oversee the implementation, registration of eligible resources, scheduling, performance monitoring, and estimation of ancillary service needs. The SLDC is also responsible for publishing these requirements and ensuring they are updated regularly.

Consumers and prosumers can establish behind-the-meter BESS without prior permission, provided they adhere to connectivity standards and notify the Distribution Company (DISCOM) before commissioning. Open access charges will follow the APERC Green Energy Open Access Regulations, 2024. The Commission retains the authority to approve capacities, monitor implementation, issue directives, amend regulations, and address challenges.

The draft was signed and issued from Kurnool on June 30, 2025, by the Commission Secretary (I/c).