Ministry of Power amends Electricity Rules; allows independent utilisation of Energy Storage System generation, transmission or distribution

The Ministry of Power has notified the Electricity (Amendment) Rules, 2025 (“Amendment”), amending the Electricity Rules, 2005 (“Principal Rules”). It allows independent utilisation of Energy Storage System (“ESS”) for generation, transmission or distribution. The Amendment is effective from 19th September 2025.

Key Highlights:

  1. Mandates utilization of Energy Storage System (“ESS”) as independent energy storage system or as part of generation, transmission or distribution.
  2. The ESS may be developed, owned, leased or operated by a generating company, transmission licensee, distribution licensee, consumer, system operator or an independent energy storage service provider.
  3. The ESS owned and operated by and co-located with a generating station, transmission licensee, distribution licensee or a consumer will have the same legal status as the owner.
  4. The developer or owner of the ESS will have an option to sell or lease or rent out the storage capacity in whole or in part to any consumer or utility engaged in generation, transmission or distribution.

A copy of the notification is attached herewith for your ease of reference.

Source: Ministry of Power

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