GERC Releases Draft BESS Regulations to Boost Gujarat’s Grid Flexibility and Storage Push
GERC has drafted regulations for battery energy storage systems, defining ownership, bidding, SLDC dispatch, minimum size, and operational framework across Gujarat.
May 27, 2026. By EI News Network
The regulations are intended to enhance grid flexibility, reliability, and security while enabling better integration of renewable energy and compliance with energy storage obligations.
The draft rules will apply to all grid-interactive BESS connected to the intra-state transmission or distribution network. Entities covered include generating companies, transmission and distribution licensees, standalone BESS developers, captive generating plants, prosumers under net metering arrangements, and aggregators. All such projects must be registered with the Gujarat Energy Development Agency (GEDA), though integrated storage forming part of a new renewable energy project may be exempt from separate registration if the BESS is clearly specified in the main project registration.
Under the proposed framework, BESS may be owned and operated by a wide range of entities, including generators, independent power producers, licensees, captive plants, consumers, and aggregators. Permitted business models include co-location with new or existing renewable or conventional generation, grid-connected standalone storage, storage embedded in distribution or transmission networks, storage under net metering or net billing arrangements, and integration with electric vehicle charging stations including vehicle-to-grid services. However, captive generating plants may only install co-located BESS that must be charged exclusively from their associated generating plant.
The draft prescribes a minimum project size of 1 MW power rating with at least two hours of energy rating, connected at 11 kV or above. Smaller systems are exempted when installed at distribution transformer level, with captive plants, or under consumer metering arrangements. Procurement of BESS services shall preferably be through competitive bidding under Section 63 of the Electricity Act, with tariffs discovered as availability-based fixed charges following Ministry of Power guidelines. Cost-plus procurement under Section 62 will be allowed only in exceptional circumstances with prior Commission approval. Transmission and distribution licensees must evaluate BESS as an alternative to conventional network augmentation and submit a techno‑commercial feasibility assessment to the Commission where storage is not intended solely for energy storage obligation compliance.
The State Load Despatch Centre (SLDC) will be responsible for despatch of all grid-connected BESS. Charging will be treated as drawal of electricity and discharging as injection. Co-located BESS will be scheduled as part of their associated generating station, not as separate entities. For transmission-linked BESS, the SLDC will maintain a separate pool account for charging costs and discharging revenues, with the net cost or benefit shared among beneficiaries according to a procedure to be approved by the Commission. Standalone BESS may be scheduled as independent entities and can participate in energy arbitrage, ancillary services, peak demand management, and congestion management. In case of competing uses, grid security and reliability will have the highest priority, followed by ancillary service obligations, contractual commitments, and market participation.
BESS will be eligible to provide ancillary services such as frequency regulation, ramping support, reserve management, and voltage support, subject to separate regulations and procedures to be notified by the Commission. During grid contingencies, the SLDC will have overriding control. All installations must conform to Central Electricity Authority technical standards, the Indian Electricity Grid Code, and applicable safety and cybersecurity guidelines. End-of-life battery disposal must follow the Battery Waste Management Rules, 2022, with responsibility resting on the BESS owner.
Consumers and prosumers may install BESS at their premises under net metering or similar arrangements with prior approval of the distribution licensee and registration with GEDA. Aggregators may pool BESS resources from multiple sites to provide services to SLDC, licensees, or market participants. Disputes related to billing of consumers or prosumers will be handled by the Consumer Grievance Redressal Forum, while other disputes will be adjudicated by the Commission. The Commission has reserved powers to issue directions, relax provisions after hearing affected parties, amend the regulations, and remove any difficulties in implementation.
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