The Central Electricity Regulatory Commission (CERC) has notified the CERC (Terms and Conditions of Tariff) (Second Amendment) Regulations, 2025.
The amendment introduces a comprehensive framework for tariff treatment of integrated energy storage systems (IESS) in both generation and transmission assets. The new provisions allow generating companies and transmission licensees to seek approval for additional capital expenditure related to IESS integration, subject to detailed scrutiny on cost estimates, phasing, and cost-benefit analysis. Supplementary tariff components such as supplementary capacity charge and supplementary energy charge have been introduced for coal/lignite-based thermal stations using IESS. The charging energy may be sourced from surplus station generation, other generators, or the market, with priority given to grid stability and technical minimum. A new clause lays out the sharing of gains from storage services (ancillary services or market sale), with a 1:1 gain-sharing mechanism between generator and beneficiaries post cost recovery. The amendment also allows up to 0.5 per cent of annual fixed charges or Rs 1 billion for research and development and innovation in energy systems to scale up self-reliant and advanced grid technologies.