Rajasthan Mandates Battery Storage for New Renewable Projects and Large Captive Plants
RERC’s draft Green Energy Open Access rules require new RE projects over 5 MW and large captive plants to install battery storage, streamline applications, and enable energy banking for grid stability.
September 30, 2025. By EI News Network
This framework promises to streamline the process for entities to purchase electricity directly from solar, wind, and other renewable projects, bypassing conventional distribution companies.
The proposed procedure outlines clear eligibility criteria, opening up the green energy market to a wider audience. Any consumer with an electricity connection having a contract demand or sanctioned load of 100 kW or more will be eligible to participate. In a notable incentive for self-sufficient green power, the draft completely waives this lower limit for consumers who wish to set up renewable energy plants solely for their own captive use, empowering even smaller entities to invest in their own clean energy sources.
A cornerstone of the new framework is its strong emphasis on grid stability through the integration of battery storage. The draft mandates that all new renewable energy projects, excluding hydro, with an installed capacity of over 5 MW must install a Battery Energy Storage System. This system must have a minimum of two hours of storage capacity, accounting for at least five percent of the project's total capacity. Furthermore, consumers who install large captive plants exceeding their contract demand will be required to add even more storage, a move designed to ensure the grid can reliably handle the intermittent nature of renewable power.
For consumers, one of the most impactful features is the provision for 'energy banking.' This mechanism acts like a savings account for electricity, allowing consumers to inject their surplus solar or wind power into the state grid and withdraw it when needed, such as at night or during periods of low generation. The draft sets clear limits on how much energy can be banked each month, linked to the consumer's total electricity consumption from the distribution licensee, and applies an eight percent charge on the withdrawn energy to cover grid management costs.
To ensure a transparent and efficient process, the entire application journey, from initial registration to final approval, will be conducted digitally through a centralised national portal known as GOAR. The procedure also clarifies the roles of governing bodies, appointing RVPNL as the nodal agency for long-term and medium-term power contracts, while the State Load Dispatch Centre will manage short-term access and registrations. By inviting public input, the Commission aims to refine these rules into a robust policy that accelerates Rajasthan's transition to a sustainable energy economy.
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