The Ministry of Power clarifies on usage of Energy Storage System (“ESS”) in various applications across the value chain of the Power Sector

The Ministry of Power has issued clarifications regarding the use of Energy Storage System (“ESS”) in various applications across the value chain of the Power Sector.

Background:

ESS is important for integration of large volumes of Renewable Energy and can also play an important role in grid balancing of large-scale penetration of renewable energy in the power system. It has several functions, the clarifications to which was sought by stakeholders.

The Ministry of Power has issued the following clarifications:

1. The Energy Storage System (ESS) is a part of the power system which is defined under the Electricity Act, 2003;

2. The ESS can be utilised either on standalone basis or complimentarily with generation, transmission, and distribution. It can be utilized as a generator, grid element or network asset which can again be developed, owned, leased or operated by a generating company, a transmission or distribution licensee, a system operator or a energy storage service provider;

3. In case of a stand alone ESS, connectivity under the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021 shall be granted and the owner/ developer of such ESS must get it registered with the Central Electricity Authority.

4. The developer/ owner of the ESS shall have the authority to sell/ lease/ rent out the storage space wholly or partly to any utility engaged in generation or transmission or distribution or to a Load Despatch Centre.

A Copy of the Notification is hyperlinked below for a detailed read.

Source: Ministry of Power