MoP proposes amendments to electricity rules to boost energy storage systems

According to draft proposal ESS can be deployed as standalone systems or integrated into generation, transmission or distribution networks.

In an aim to accelerate the integration of Energy Storage Systems (ESS) into India’s power infrastructure, the Ministry of Power has proposed key amendments to Rule 18 of the Electricity Rules, 2005. The draft amendments seek to modernise the regulatory framework and promote widespread adoption of ESS across the electricity value chain.

According to the draft government allows ESS to be deployed as standalone systems or integrated into generation, transmission, or distribution networks. This flexibility is expected to enhance grid reliability and renewable energy integration.

The draft expands the list of eligible ESS participants to include generating companies, licensees, consumers, system operators and independent service providers—opening the door to greater private and institutional investment. Meanwhile, it clarifies that an ESS inherits the legal identity of its owner, even if operated remotely but will be treated as a separate entity for dispatch and scheduling purposes.

It also allows commercial freedom by permitting the sale, lease or rental of ESS capacity to utilities, consumers or Load Despatch Centres.

Stakeholders have until July 10, 2025, to submit their feedback.