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Core Purpose

The Ministry of Power issues the Electricity (Amendment) Rules, 2025, to further amend the Electricity Rules, 2005, regarding Energy Storage Systems.

Detailed Summary

The Central Government, through the Ministry of Power, exercising powers under section 176 of the Electricity Act, 2003 (Act 36 of 2003), published the Electricity (Amendment) Rules, 2025, vide G.S.R. 688(E) on September 19, 2025. These rules amend the Electricity Rules, 2005, which were originally published vide G.S.R. 379(E) dated June 8, 2005, and last amended vide G.S.R 181(E) dated March 12, 2024. The amendments primarily concern rule 18 of the Electricity Rules, 2005, redefining the utilization, ownership, and operational framework for Energy Storage Systems (ESS). Sub-rule (2) is substituted to clarify that ESS can be used independently or as part of generation, transmission, or distribution. Sub-rules (4) and (5) are also substituted: (4)(a) allows ESS to be developed, owned, leased, or operated by various entities including generating companies, licensees, consumers, system operators, or independent service providers; (4)(b) specifies that co-located ESS share the owner's legal status, while non-co-located ESS, though retaining owner's status, are treated as separate storage elements for scheduling and dispatch; and (5) grants the ESS developer or owner the option to sell, lease, or rent out storage capacity to consumers, utilities, Load Despatch Centres, or any other person.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-20092025-266274 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY NEW DELHI, FRIDAY, SEPTEMBER 19, 2025/BHADRA 28, 1947 MINISTRY OF POWER NOTIFICATION New Delhi, the 19th September, 2025 G.S.R. 688(E).—In exercise of the powers conferred by section 176 of the Electricity Act, 2003 (Act 36 of 2003), the Central Government hereby makes the following rules further to amend the Electricity Rules, 2005, namely:- 1. Short title and commencement. - (1) These rules may be called the Electricity (Amendment) Rules, 2025. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Electricity Rules, 2005, in rule 18,- (i) for sub-rule (2), the following sub-rules shall be substituted, namely:- "(2) The Energy Storage System shall be utilised either as independent energy storage system or as part of generation, transmission or distribution." (ii) for sub-rules (4) and (5), the following sub rules shall be substituted, namely:- "(4)(a) The Energy Storage System may be developed, owned, leased or operated by a generating company or a transmission licensee or a distribution licensee or a consumer or a system operator or an independent energy storage service provider. (b) The Energy Storage System owned and operated by and co-located with a generating station or a transmission licensee or a distribution licensee or a consumer, shall have the same legal status as that of the owner: Provided that if such an Energy Storage System is not co-located with, but owned and operated by, the generating station or distribution 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) The developer or owner of the Energy Storage System, shall 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 or transmission or distribution or to a Load Despatch Centre or any other person." [F. No. 23/2/2022-R&R] SRIKANT NAGULAPALLI, Addl. Secy. Note: The Principal rules were published in the Gazette of India Part II, Section 3, Sub-section(i), vide number G.S.R. 379(E), dated the 8th June, 2005 and were last amended vide number G.S.R 181(E), dated the 12th, March 2024. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. SARVESH KUMAR Digitally signed by SARVESH KUMAR SRIVASTAVA SRIVASTAVA Силк 2025.09.20 16:35:53 +0530

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