Andhra Pradesh Issues Regulations for Planning, Procurement, Deployment and Utilisation of BESS
The Andhra Pradesh Electricity Regulatory Commission has issued regulations for planning, procurement, deployment, and utilisation of Battery Energy Storage Systems (BESS), laying the foundation for a structured, multi-stakeholder framework. The state aims to add 25 GWh of BESS capacity to support its goal of integrating over 160 GW of renewable energy.
September 12, 2025. By Mrinmoy Dey
The state's 'Integrated Clean Energy Policy, 2024' has set a target of adding approximately 25 GWh of BESS capacity to support its goal of integrating over 160 GW of renewable energy. This new regulation is a critical step in turning that vision into a reality.
APERC’s new BESS regulation seeks to create a structured approach for BESS deployment across generation, transmission, distribution, and consumer-end applications. It encourages participation from a wide range of stakeholders, including DISCOMs, transmission licensees, generating companies, renewable developers, independent power producers (IPPs), storage service providers, aggregators, and consumers.
The regulation lays out flexible ownership and deployment models – allowing BESS to be co-located with renewable energy projects, installed as standalone grid assets, embedded in networks, or even set up behind-the-meter by consumers. It can even be integrated with EV charging stations and battery swapping stations, and integrated with electric vehicles for Vehicle to Grid (V2G) services and Grid-to-Vehicle (G2V) services.
The regulation clearly establishes Battery Energy Storage Systems (BESS) as a core component of grid management, enabling them to deliver essential grid support services with defined revenue streams. These services include frequency regulation across all levels (primary, secondary, and tertiary), spinning and non-spinning reserves, voltage stabilisation, black start capabilities and demand response services.
Aggregators will play a key role in consolidating BESS services from multiple sites to provide services to the grid or to market participants.
For DISCOMs and transmission licensees, the regulation mandates inclusion of BESS in resource planning and procurement via competitive bidding, subject to APERC approval. Preference will be given to co-located systems to reduce grid integration costs.
The regulation also defines a minimum individual project size of 1 MW with at least four hours of energy rating. However, smaller systems at the distribution transformer (DTR) level for rooftop solar storage locally are also allowed.
The Andhra Pradesh State Load Dispatch Centre (APSLDC) has been designated the nodal agency responsible for implementing ancillary services using BESS. It will also oversee eligibility, performance monitoring, and the development of scheduling, metering, and remuneration protocols.
Tariff mechanisms for BESS include cost recovery through Commission-approved tariffs for licensee-owned assets and competitive bidding for third-party providers. Market-linked services will be compensated based on market-clearing prices in ancillary markets.
The regulation also sets out technical standards and compliance requirements related to safety, cybersecurity, and environmental norms in line with CEA, MeitY, and MoEFCC guidelines. It mandates regular data submissions, system inspections, and integration protocols for both grid-connected and standalone systems.
Importantly, the regulation provides open access for BESS under the state’s Green Energy Open Access framework and includes mechanisms for dispute resolution, amendments, and removal of operational difficulties.
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