Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

RERC Introduces BESS Regulations to Strengthen Grid Stability and Enable Renewable Integration

The Rajasthan Electricity Regulatory Commission has notified new regulations for Battery Energy Storage Systems (BESS), creating a comprehensive framework to support large-scale deployment, multi-use applications, and enhanced grid reliability across the state.

The Rajasthan Electricity Regulatory Commission (RERC) has announced the Rajasthan Electricity Regulatory Commission (Battery Energy Storage Systems) Regulations, 2026, establishing detailed guidelines for the deployment, ownership, and operation of battery storage systems within the state’s power ecosystem.

The framework is designed to accelerate the adoption of energy storage to facilitate renewable energy integration, improve grid stability, and unlock new business opportunities for utilities, developers, and consumers. It allows battery storage systems to be deployed across generation, transmission, distribution, and end-user levels, while maintaining a technology-neutral stance.

Developed after an extensive stakeholder consultation process, the regulations incorporate inputs from industry participants, utilities, and developers to refine key aspects such as ownership structures, operational protocols, planning processes, and safety standards.

A notable provision ensures operational neutrality by excluding the State Load Despatch Centre (SLDC) from owning battery storage assets. Instead, the SLDC will function solely as the nodal authority for grid operations, scheduling, and coordination, maintaining its independence as a system operator.

The regulations also define operational guidelines for standalone BESS projects, including requirements for scheduling, metering, and settlement. Until a dedicated state mechanism is introduced, provisions from the Central Electricity Regulatory Commission deviation settlement framework will be applied.

To strengthen long-term planning, distribution companies and the State Transmission Utility must now incorporate energy storage into resource adequacy planning. A consolidated intrastate storage roadmap will also be developed to ensure coordinated deployment.

For utility-scale projects, a minimum capacity of 1 MW with a two-hour storage duration has been retained to support efficient grid integration. However, flexibility has been provided for smaller installations, such as behind-the-meter systems and distribution-level storage, as well as for projects supporting ancillary services.

A key highlight of the framework is the provision for revenue stacking, allowing BESS operators to offer multiple services—such as energy trading and ancillary grid support—either simultaneously or in sequence. This is expected to improve project viability and attract investment in storage infrastructure.

The regulations also promote consumer participation by allowing individuals and prosumers to install battery systems up to their contracted demand. These systems can engage in demand response programs and may support future vehicle-to-grid applications. Energy exports under net metering or billing frameworks will continue to follow existing rules.

Additionally, the framework introduces aggregator participation, enabling multiple small-scale storage systems to be pooled and operated as a single entity in the electricity market, thereby enhancing the role of distributed energy resources.

Procurement of storage capacity by utilities will be conducted through transparent, tariff-based competitive bidding, with provisions for multi-part tariffs and performance-linked payments. Environmental and safety compliance has also been emphasized, aligning installations with standards issued by the Central Electricity Authority and the Battery Waste Management Rules, 2022.

To maintain regulatory clarity, the framework includes a safeguard ensuring that existing projects, agreements, and bids that have already reached advanced stages will remain unaffected by the new rules.

With Rajasthan emerging as a major renewable energy hub, these regulations are expected to play a crucial role in enabling a more flexible, reliable, and resilient power system while supporting the state’s clean energy transition.