The Ministry of Powe has issued the draft Electricity (Amendment) Rules, 2025 to amend the Electricity Rules, 2005, introducing provisions on the utilisation, ownership, and legal treatment of energy storage systems (ESS).
As per the draft, ESS may be utilised either as an independent storage system or as an integrated component of generation, transmission, or distribution infrastructure. The ESS can be developed, owned, leased, or operated by generating companies, transmission or distribution licensees, consumers, system operators, or independent energy storage service providers. The legal status of the ESS will mirror that of its owner, and if not co-located with the generating station or distribution licensee, it will still be treated as a separate storage element for scheduling and dispatch purposes. Further, the rules provide that ESS developers or owners may sell, lease, or rent storage space in part or in full to any consumer, utility involved in generation, transmission or distribution, or to a load despatch centre.