Rajasthan Electricity Regulatory Commission

Vidyut Viniyamak Bhawan, Near State Motor Garage,Sahakar Marg, Jaipur-302001

Phone: 0141-2741299, 2740067, Fax: 0141-2741018, E-mail: rercjpr@[Link]
website: [Link]

PUBLIC NOTICE

In exercise of powers conferred under Section 86(1)(e) read with Section 181
of the Electricity Act, 2003, and all other powers enabling it in this behalf, the
Rajasthan Electricity Regulatory Commission having framed the following
Draft Regulations, invites suggestions/comments from the interested persons
before finalizing them.

‘RERC [Battery Energy Storage Systems(BESS)] Regulations, 2025’

Notice is hereby issued inviting comments/suggestions on the above Draft

Regulations from interested persons. The copy of the Draft Regulations may
be obtained from the Receiving Officer of the Commission on payment of
Rs. 100/-. The Draft Regulations are also available on Commission’s website
[Link].

The comments/suggestions if any should reach the Receiving Officer of

the Commission in six copies on or before 14.11.2025.

Secretary

(Not to be published)

([Link])
IAS
Secretary
 jktLFkku fo|qr fofu;ked vk;ksx
fo|qr fofu;ked Hkou] LVsV eksVj xsjst ds ikl] lgdkj ekxZ]t;iqj&302001
nqjHkk"k % bZ-ih-ch-,Dl 0141&2741299] QSDl %0141&2741018
bZ&esy : rercjpr@[Link] Website: [Link]

lkoZtfud lwpuk

fo|qr vf/kfu;e] 2003 dh /kkjk 86 ¼1½¼bZ½ lgifBr /kkjk 181 ,oa vU; lHkh izko/kku tks
bl lanHkZ esa bls lkeF;Z iznku djrs gSa] ds varxZr jktLFkku fo|qr fofu;ked vk;ksx }kjk
izk:i fofu;e cuk;s x;s gSA budks vafre :i nsus ls iwoZ vk;ksx }kjk lHkh bPNqd
O;fDr;ksa ls lq>ko@fVIif.k;ka vkeaf=r dh tkrh gSa%
jktLFkku fo|qr fofu;ked vk;ksx [cSVjh ÅtkZ HkaMkj.k ç.kkyh± (BESS)] fofu;e]
2025-
,rn~}kjk mijksDr [Link] izk:i fofu;eks dh lwpuk tkjh dj bPNqd O;fDRk;ksa ls
lq>ko@fVIif.k;k¡ vkefU=r fd;s tkrs gaS-SA izk:Ik fofu;e e; leFkZu fooj.k dh izfrfyih
vk;ksx ds izkIrdrkZ vf/kdkjh ds ikl miyC/k gS ftls : 100 dk udn Hkqxrku dj izkIr
fd;k tk ldrk gSSA izLrkfor fofu;e e; leZFkd fooj.k vk;ksx dh oSclkbZV
[Link] ij Hkh miyC/k gSaA
;fn dksbZ O;fDr lq>ko@fVIif.k;k¡ nsuk pkgs rks vk;ksx ds izkIrdrkZ vf/kdkjh dks
fnukad 14-11-2025 rd ;k blls iwoZ N% izfr;ks esa izkIr gks tkuh pkfg,A

lfpo
______________________________________________________________________________________

(Not to be published)

¼ch-,y-xks;y½
vkbZ,,l
lfpo
 Draft RERC (Battery Energy Storage Systems) Regulations, 2025

Explanatory Memorandum

The Electricity Act, 2003, empowers the State Electricity Regulatory

Commissions to promote efficiency, economy, and competition in the
electricity sector and to regulate the purchase, distribution, supply, and
utilisation of electricity within the State.

In exercise of these statutory functions, the Rajasthan Electricity Regulatory

Commission (RERC) has framed the draft RERC (Battery Energy Storage
Systems) Regulations, 2025, with the objective of establishing a
comprehensive regulatory framework for the planning, procurement,
deployment, and utilisation of Battery Energy Storage Systems (BESS) in the
State of Rajasthan.

The Ministry of Power, Government of India, issued Guidelines on 11 March

2022 for the procurement, utilisation, and integration of Battery Energy
Storage Systems as part of generation, transmission, and distribution assets
and for providing ancillary services in the electricity grid. Subsequently, in
August 2023, the Government of India notified the National Framework for
Energy Storage Systems to support renewable energy integration, ensure grid
stability, and enable market-based participation of storage technologies.

The Central Electricity Authority (CEA), in its National Electricity Plan (NEP),
2023, has also underscored the critical role of storage in achieving renewable
energy targets, managing intermittency, maintaining reliability, and
improving overall system flexibility. These national initiatives collectively aim to
create an enabling environment for energy storage deployment and market
development across the power sector.

Battery Energy Storage Systems have emerged as a vital enabler of the

modern power system. They provide multiple grid-supporting functions such
as enhancing grid flexibility and resilience, maintaining frequency and
voltage stability, managing peak loads, reducing renewable energy
curtailment, supporting time-shifting of renewable generation, and providing
ancillary and balancing services. By addressing the intermittency associated
with renewable energy generation, BESS contributes significantly towards
ensuring reliable supply, improving grid efficiency, and achieving national
and State-level decarbonisation objectives.

Recognising the importance of energy storage, the Government of

Rajasthan has notified the Rajasthan Integrated Clean Energy Policy, 2024,
which seeks to promote decentralised renewable energy generation and to
develop an enabling ecosystem for distributed solar generation and storage.
The Policy envisages the creation of an energy storage market in the State to
integrate larger volumes of renewable energy into the grid and to offer grid-
support services such as peak reduction, curtailment management,
contribution to reliability needs, transmission deferrals, and intraday as well as
seasonal variation management. It also positions Rajasthan as a clean
energy hub of the country and a preferred destination for innovative clean
energy and storage projects.

In light of the evolving national policy framework, the provisions of the

Rajasthan Integrated Clean Energy Policy, 2024, and the increasing need for
flexible and resilient grid operation, the Commission found it necessary to
establish a dedicated regulatory framework governing the planning,
deployment, ownership, operation, registration, and market participation of
BESS in the State. Accordingly, the draft RERC (Battery Energy Storage
Systems) Regulations, 2025, were prepared and published through a Public
Notice, inviting comments, suggestions, and objections from all stakeholders
and interested parties.
 DRAFT NOTIFICATION

RAJASTHAN ELECTRICITY REGULATORY COMMISSION NOTIFICATION, Jaipur

No. RERC/Secy/Reg. ----- -

In exercise of the powers conferred on it under Section 61, Section 86 read

with Section 181 of the Electricity Act, 2003 (No. 36 of 2003), and all other
powers enabling it in this behalf, the Rajasthan Electricity Regulatory
Commission, after previous publication, hereby makes the following
Regulations, namely:

1. Short Title, Commencement, and Applicability

1.1. These Regulations may be called the Rajasthan Electricity Regulatory

Commission [Battery Energy Storage Systems (BESS)] Regulations, 2025.

1.2. These Regulations shall come into force from the date of publication of
these Regulations in the official gazette.

1.3. These Regulations shall apply to all Licensees, Generating Companies,

Renewable Energy Developers, Aggregators, Battery Energy Storage System
(BESS) Service Providers, Consumers, and other entities involved in the
Planning, Procurement, Deployment, Operation, or Utilization of Battery
Energy Storage Systems within the State of Rajasthan.

1.4. Technology Neutrality: These regulations are intended to be technology-

neutral and shall apply to all forms of battery energy storage systems that
meet the required technical and performance standards, ensuring the
framework remains relevant as technology evolves.

2. Definitions

(1) In these Regulations, unless the context otherwise requires:

a) "Act" means the Electricity Act, 2003 (36 of 2003);

b) "Aggregator(s)" or "Distributed Energy Resources Aggregator or DERA"
means an entity registered/appointed with/by the distribution
licensee to provide aggregation of one or more services like demand
response services, Distributed Generation, Energy Storage, etc., within
a license area.
c) "Ancillary Service (AS) capacity obligation" is the capacity signalled
for despatch by the Nodal Agency under SRAS or the capacity
procured by the Nodal Agency under TRAS;
d) "Banking" means a facility through which the unutilized portion of
energy from any of the Green Energy Sources during a billing month is
 kept in a separate account and treated in accordance with the
conditions laid down in the relevant Regulations issued by the
Commission.
e) "Battery Energy Storage Systems" or "BESS" shall mean the
system(s)/projects utilizing electrochemical batteries or any other
technology as per the guidelines issued by the Ministry of New and
Renewable Energy (MNRE) from time to time, providing a facility that
can store chemical energy and deliver it as electricity.
f) "Battery Energy Storage System Developer" or "BESSD" or "Developer"
shall mean the entity owning/operating the BESS facility for the supply
of power under this regulation.
g) "Commission" means the Rajasthan Electricity Regulatory Commission.
h) "Distribution Licensee", "Transmission Licensee", "Generating
Company", and "SLDC" shall have the meanings assigned to them
under the Act.
i) "Firm and Dispatchable RE Power" means the power profile
configuration that is defined in the RfS that is sought to be met by RE
power sources and will include configurations like assured peak
power, Round the clock RE with firm delivery of power at rated
capacity at any hour of the day as per demand or load following
power delivery as specified by Discoms, Clean energy project with
firm delivery of power for fixed hours of requirement by Discoms etc. .
j) "Fuel Cell" means an electrochemical cell that converts the chemical
energy of a fuel and an oxidizing agent into electricity.
k) "Nodal Agency" means the State Load Despatch Centre (SLDC), which
shall be responsible for the implementation of the Ancillary Services at
the intra-state level.
l) "Standalone BESS" means a BESS operating independently as a
merchant unit that has the capability to engage in energy or
capacity trading in power markets or AS.
m) "Round-Trip Efficiency" means the ratio of the total electrical energy
discharged from the BESS to the total electrical energy supplied to
charge the BESS, expressed as a percentage.
n) “Un-Requisitioned Surplus” or “URS” means the capacity in a
generating station that has not been requisitioned and is available for
dispatch, and is computed as the difference between the declared
capacity or maximum possible generation, as the case may be, of
the generating station and its total schedule.

(2) Save as aforesaid and unless repugnant to the context or the subject
matter otherwise requires, words and expressions used in these regulations
and not defined, but defined in the Act, or the Grid Code or any other
regulation of the Commission/CERC shall have the meaning assigned to them
respectively in the Act or the Grid Code or such other regulation as amended
time to time.

3. Objectives

The primary objectives of these Regulations are:

(a) To enable deployment and utilization of BESS as part of generation,

transmission, and distribution assets;

(b) To facilitate the participation of BESS in ancillary services and energy

markets;

(c) To promote cost-effective energy storage solutions that support grid

stability, frequency management, and renewable energy integration;

(d) To establish a framework for Aggregators and third-party BESS developers

to participate in the electricity market.

4. Ownership and Business Models

4.1. BESS may be developed and owned by Distribution Licensees,

Transmission Licensees, GENCOS, Independent Power Producers (IPPs),
Consumers, SLDC, Standalone BESS, Renewable Energy Developers,
Aggregators, or any other third-party investors.

4.2. BESS may be deployed as co-located with RE & Conventional generators,

grid-connected standalone storage, embedded in distribution or transmission
networks, behind the meter (Consumer level), or integrated with Electric
Vehicle (EV) infrastructure for Vehicle-to-Grid (V2G) services.

4.3. The Battery Energy Storage System shall be utilised either as an

independent battery energy storage system or as part of the generation,
transmission, or distribution system or integrating the consumer’s load
independently or with RE sources co-located behind the meter.

4.4. The Battery Energy Storage System can be developed, owned, leased,
or operated by a generating company, a transmission licensee, a distribution
licensee, a consumer, a system operator, or an independent battery energy
storage service provider.

4.5. The Battery Energy Storage System shall have the same legal status as
that of the owner:
Provided that if such a Battery Energy Storage System is not co-located with,
but owned and operated by, the generating station or licensee or consumer,
the legal status shall still be that of the owner, but for the purpose of
scheduling and dispatch and other matters, it shall be treated at par with a
separate storage element.

5. Planning and Procurement

5.1. The holistic system requirements, including but not limited to, managing
reverse power flow from lower to higher voltage at various substations,
addressing transmission or distribution network congestion, mitigating high
renewable energy penetration challenges, and resolving voltage or
frequency stability issues, shall be the criterion for finalizing the BESS locations
in the Distribution System or Transmission System by Distribution/Transmission
licensees.

5.2. The Distribution Licensees and the State Transmission Utility (STU) shall plan
the requirement of energy storage capacity within their respective areas of
operation, keeping in view the technical considerations, system reliability,
and load requirements.

Provided that in the process of such planning, both the Distribution Licensees
and the STU shall consult the State Load Despatch Centre (SLDC).

Provided further that the proposed storage plan shall be submitted for
approval to the Commission along with ARR/Investment Plan.

Provided also that in their respective plans, the licensees shall specifically
indicate whether they intend to install and operate their own Battery Energy
Storage System (BESS) along with its proposed location, or procure energy
storage capacity or services from third-party providers, specifying the
proposed injection point, justifying the location.

5.3. The minimum individual project size shall have a power rating of 1MW
and above, with a suitable energy rating of at least two hours, connected at
11 kV or above.

Provided that this minimum size does not apply to BESS at the Distribution
Transformer (DTR) level or for behind-the-meter applications by consumers.

Provided further that the Commission may, from time to time, review and
revise the minimum project size through separate order to adapt to
technological advancements and market conditions.

6. Utilization for Ancillary Services

BESS shall be eligible to provide services such as frequency regulation,
spinning reserves, voltage support, black start services, and demand
response services or any other services defined in IEGC/REGC amended time
to time.

7. Role of Aggregators

Aggregators may aggregate BESS resources from multiple sites to provide

services to the SLDC/TRANSCO/DISCOM/GENCO or other market participants
and shall follow the protocols issued by SLDC.

Provided that the SLDC in consultation with licensees, shall specify the
minimum technical and financial eligibility criteria, online registration formats,
applicable fees, and any other terms and conditions for an entity to register
as an Aggregator.

8. Commercial Agreements

Eligible entities may enter into commercial agreements with Licensees or

other market participants for the provision of BESS services.

9. Tariff and Market Participation

9.1. All procurement of BESS capacity and services by the Licensees shall be
undertaken only through tariff-based competitive bidding.

9.2. Battery Energy Storage Systems (BESS) owned or operated by consumers

shall be permitted to participate in energy arbitrage by purchasing electricity
from the grid during off-peak hours and selling it back to the grid during peak
hours.

Provided that the settlement mechanism for such transactions shall be as

specified by the Commission through a separate order either Suo-motu or
based on application filed before it.

Provided further that consumers may install the Battery Energy Storage
System either as a standalone system or in conjunction with a solar power
plant.

Provided also that consumers shall be allowed to operate the BESS in such a
manner that the energy stored in the system, installed behind the consumer’s
meter, may be utilized for self-consumption or supplied to the Distribution
Licensee during peak hours for which Commission may specify incentivize
tariff.

9.3. For the procurement of ancillary services, the Commission may approve
a single part or multi-part tariff structure, which may include a fixed capacity
charge for availability, a variable energy charge for dispatch, and
performance-based incentives to ensure reliability.

9.4. Renewable energy procured and used for charging BESS shall retain its
renewable character upon discharge and consumption. Accordingly,
obligated entities or consumers shall be eligible to claim the RPO/RCO
benefit for such consumption.

10. Technical Standards

BESS installations shall conform to technical standards specified by the

Central Electricity Authority (CEA), MNRE, and other relevant authorities. BESS
providers shall submit real-time data to SLDC as prescribed.

11. Safety, Cybersecurity, and Environmental Norms

11.1. BESS systems shall comply with applicable regulations, standards and
codes issued by the Central Electricity Authority (CEA) regarding safety.

11.2. Cybersecurity and communication protocols shall adhere to the

guidelines of the Ministry of Electronics and Information Technology (MeitY),
the Central Electricity Authority (CEA), and the Ministry of Power (MOP).

11.3. Environmental management and end-of-life disposal of batteries shall

be in accordance with the guidelines/regulations of the Government of
India/GoR. The responsibility of disposal shall lie with the owner of the BESS.

12. Role of Licensees

12.1. Distribution Licensees shall publish on their websites potential sites at the
11 kV voltage level in their 33/11 kV substations for establishing BESS of the
required capacities based on feeder level solarization.

12.2. Distribution licensees shall register AS providers and Aggregators in

accordance with these Regulations.

12.3. Expenditure on BESS shall be recoverable through the Annual Revenue

Requirement (ARR) under specified heads for power purchase or capital
expenditure, as applicable, subject to Commission approval for which
Distribution Licensee shall file suitable proposals.

12.4. The Transmission Licensee shall include BESS in its planning and
investment plan and file proposals for Commission approval. Approved
expenditure shall be recoverable through the Transmission Business ARR.
12.5. Except for the Battery Energy Storage Systems (BESS) installed and
owned by the licensees, the procurement of BESS capacity or services shall
be undertaken only through a transparent competitive bidding process
conducted in accordance with the guidelines issued by the Government of
India, indicating the applicable case as specified in such guidelines.

12.6. The Transmission Licensee shall prepare a standard agreement format

for procuring ancillary services and obtain the Commission's approval before
entering into agreements.

14. Role of Nodal Agency (SLDC)

14.1. SLDC shall verify governor settings of thermal generators and assess the
requirement of Primary, Secondary, and Tertiary Reserve Ancillary Services
(PRAS, SRAS, TRAS) from BESS. The report shall be published and updated
annually.

14.2. The SLDC shall specify eligibility criteria for BESS resources to provide
ancillary services, based on technical criteria and operational performance,
and publish on its website within three months from the date of notification
of this Regulation.

14.3. The SLDC, in consultation with STU and licensees, shall prepare and
publish on its website the eligibility criteria for the registration of AS providers
within three months from the date of notification of this Regulation.

14.4. The SLDC shall prepare a procedure for Scheduling, Metering,

Accounting, Settlement, and Commercial mechanisms for the
operationalization of ancillary services through BESS, for approval by the
Commission, within six months from the date of publication of this
Regulation.

14.5. The SLDC shall monitor the performance of BESS, including State of
Charge (SoC), Round-Trip Efficiency, and availability.

15. Role of GENCOS/IPPs/CPPs/BESS Developers

GENCOS, IPPs, CPPs, and BESS Developers may establish BESS at any point in
the system, after obtaining due approvals, and participate in the ancillary
services market and may register with the relevant licensee to provide such
services.

16. Consumers/Prosumers
16.1 All consumers shall be permitted to establish behind-the-meter Battery
Energy Storage Systems (BESS) up to their contract demand, with or without
solar power plants.

Provided that such consumers shall be required to register their BESS

installations with the Distribution Licensees through the online portal
developed and maintained by the Distribution Licensees Nodal Agency,
however, no prior permission or formal connection agreement with the
Distribution Licensee shall be required for installation of the BESS.

Provided also that such systems shall comply with the technical standards
and safety requirements specified by the Central Electricity Authority (CEA).

16.2 In case the Battery Energy Storage System (BESS) is installed in hybrid
mode along with a solar power plant that is either already installed or
proposed to be installed under the Net Metering, Net Billing, Group Net
Metering, or Virtual Net Metering framework, the entire hybrid system shall be
governed by the respective provisions applicable to the framework under
which the solar plant is registered, i.e., Net Metering, Net Billing, Group Net
Metering, or Virtual Net Metering, as specified under the Rajasthan Electricity
Regulatory Commission (Grid Interactive Distributed Renewable Energy
Generating Systems) Regulations, 2021, as amended from time to time.

Provided that in such cases, the energy injected into the Distribution
Licensee’s network during non-solar peak hours shall be payable to the
consumer at the incentivized tariff, as may be specified by the Commission
through a separate order issued either suo motu or upon an application filed
before it.

16.3 Consumers or prosumers having eligible behind-the-meter BESS shall be

permitted to participate in the demand response and such similar
programmes, either directly or through an Aggregator, subject to
compliance with applicable regulations. The Discoms shall also develop
programmes for Vehicle to Grid/Grid to Vehicle concept through smart
chargers.

Provided that participation in such services shall require the installation of a

smart meter and communication infrastructure capable of real-time data
acquisition and transmission, as may be specified by the Distribution Licensee.

17. Open Access to BESS

The RERC Green Energy Open Access Regulations, as amended from time to
time, shall govern the open access and related charges. The Commissions
based on a petition filed by the licensees , Generators or SLDC, may also
issue a separate order for waiver or method of charging for BESS in case any
such need arises.

18. Dispute Resolution

18.1 Consumer-related disputes shall be dealt with as per the RERC

(Consumer Grievance Redressal Forum, Electricity Ombudsman and
Consumer Advocacy) Regulations, 2021.

18.2 All other disputes arising under this regulation shall be referred to the
State Power Committee constituted under the State Grid Code which shall
endeavor to resolve the grievance within 30 days and where State Power
Committee is unable to resolve the grievance, it shall be referred to the
Commission and Commission’s decision in this regard shall be final and
binding.

19. Power to give directions

The Commission may, from time to time, issue such directions and orders as it
considers appropriate for the implementation of these Regulations.

20. Power to remove difficulties

If any difficulty arises in giving effect to the provisions of these Regulations, the
Commission may, by an order, make such provisions as may be necessary for
removing the difficulty.

21. Power to relax

The Commission may, for reasons to be recorded in writing, relax any of the
provisions of these Regulations on an application made before it.

22. Power to amend

The Commission may, from time to time, add, vary, alter, suspend, modify,
amend, or repeal any provision of these Regulations.

By Order of the Commission

(Secretary)