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MoP Proposes New Rules to Enable Sale and Lease of Energy Storage Systems

The Ministry of Power (MoP) has proposed a significant amendment to the Electricity Rules 2025, aiming to create a comprehensive regulatory framework for Energy Storage Systems (ESS) in India. The draft allows sale, lease, and renting of ESS, treating it as independent energy infrastructure, whether co-located or standalone. Comments from stakeholders are invited by July 10, 2025.

Under the proposed changes, ESS can be developed or operated by generating companies, transmission or distribution licensees, consumers, system operators, or independent energy storage providers. The legal status of the ESS aligns with its owner unless it is independently scheduled and dispatched.

Importantly, developers can now sell, lease, or rent ESS to consumers or utilities involved in generation, transmission, or distribution, and even sell stored energy to load dispatch centers. This opens up commercial opportunities and supports grid integration of intermittent renewable energy sources.

The policy builds on the government’s February 2025 mandate requiring all solar tenders to include co-located ESS of at least two hours for 10% of the solar capacity. Industry experts like Ayush Misra, CEO of AmpereHour Energy, believe this will improve grid stability and enhance renewable energy utilization, supporting India’s transition to a clean energy future.