APERC issues BESS regulations 2025

The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued new regulations governing the planning, procurement, deployment, and use of battery energy storage systems (BESS). The regulations are designed to establish a systematic framework for deploying BESS across all levels, such as generation, transmission, distribution, and end-user applications. It promotes the involvement of diverse stakeholders, such as distribution companies (DISCOMs), transmission licensees, power generators, renewable energy developers, independent power producers, storage service providers, aggregators, and consumers.

According to the regulations, flexible ownership and deployment models for BESS are permitted. BESS can be co-located with renewable energy projects, installed as standalone grid assets, embedded in networks, or deployed behind-the-meter by consumers. Additionally, BESS can be integrated with electric vehicle (EV) charging stations and battery swapping stations. It can also be integrated with EVs for vehicle-to-grid services and grid-to-vehicle services.

Furthermore, the regulations require DISCOMs and transmission licensees to integrate BESS into their resource planning. The regulations also mandate that they procure BESS through competitive bidding, subject to prior approval from APERC. It further specifies a minimum individual project size of 1 MW with a minimum energy storage duration of four hours. Aggregators will have an important role in combining BESS services from various sites to provide services to the grid or to participants of the market.

The regulations also lay down technical standards and require adherence to safety, cybersecurity, and environmental norms in line with the Central Electricity Authority, Ministry of Electronics and Information Technology, and Ministry of Environment, Forest, and Climate Change guidelines. Furthermore,  open access is permitted under the Green Energy Open Access framework, with mechanisms in place for dispute resolution, amendments, and addressing operational issues.

Moreover, the Andhra Pradesh State Load Dispatch Centre has been appointed as the nodal agency for implementing ancillary services through BESS. It will also be responsible for assessing eligibility, monitoring performance, and establishing protocols for scheduling, metering, and compensation.