The Ministry of Power (MoP) has proposed draft amendments to Rule 18 of the Electricity Rules, 2005, concerning energy storage systems (ESS). The proposed amendments specify that ESS may be used either independently or as an integrated component of power generation, transmission, or distribution systems. The draft further states that ESS can be developed, owned, leased, or operated by generating companies, transmission or distribution licensees, consumers, system operators, or independent energy storage service providers.
In terms of legal status, ESS will be treated in line with its ownership. However, if not co-located with the associated generating station, distribution licensee, or consumer, the ESS will still retain the owner’s legal status but will be treated as a separate storage entity for scheduling, dispatch, and related regulatory processes.
Additionally, the amendments include a provision allowing developers or owners of ESS to sell, lease, or rent out the storage capacity, either in full or in part. This can be done with any utility or consumer engaged in generation, transmission, or distribution, or with a load despatch centre.
