The Union Ministry of Power has issued a draft of proposed amendments to Rule 18 of the Electricity Rules, 2005, focusing specifically on Energy Storage Systems (ESS). Stakeholders are invited to provide feedback on these changes within 30 days, with comments due by July 10, 2025. The intended “Electricity (Amendment) Rules, 2025” are designed to clarify and modernize regulations concerning the development, operation, and use of energy storage in India’s power sector. These amendments are being enacted under the authority granted by Section 176 of the Electricity Act, 2003.
Key proposed changes to Rule 18 include:
– Energy Storage Systems may be employed as independent systems or as integral components of generation, transmission, or distribution infrastructure.
– A variety of entities, such as generating companies, transmission licensees, distribution licensees, consumers, system operators, and independent energy storage service providers, will be allowed to develop, own, lease, or operate ESS.
– An ESS will generally share the same legal status as its owner. Importantly, even if an ESS is not located on the same site as its owner (for example, a generating station or distribution licensee), its legal status will still belong to the owner. However, for scheduling and dispatch purposes, it will be treated as a distinct storage element.
– Developers or owners of ESS will have the flexibility to sell, lease, or rent their storage capacity, in whole 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 shared with key stakeholders for consultation, including the Ministry of New and Renewable Energy, the Ministry of MSME, the Central Electricity Authority, the Central Electricity Regulatory Commission, various State Governments and Electricity Regulatory Commissions, Public Sector Units under the Ministry of Power, DISCOMs/GENCOs, and major industry associations like FICCI, CII, PHDCCI, ASSOCHAM, the Indian Wind Power Association, the Indian Wind Turbine Manufacturers Association, the National Solar Energy Federation of India, and the Solar Power Developers Association.
Comments on the proposed amendments can be submitted to the Ministry of Power via email at rri-mop@gov.in.
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