Energy storage regulations in India: where the rules stand in 2026

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Battery storage is moving from pilot projects into tenders, captive plans and industrial power strategies. The rules have not kept to one place. A developer, an investor or an industrial buyer has to read several instruments, at different stages, to know where a project stands.

This overview maps those layers and the status of each, as of our last review. It does not tell you whether a scheme or waiver applies to your project. That depends on the project's configuration, timing and the conditions of each instrument. For a project-specific view, see our BESS regulatory advisory.

Who makes the rules

Storage is regulated within the framework of the Electricity Act, 2003. The main rule-makers are:

  • Parliament, through the Electricity Act and related laws;
  • the Ministry of Power, through rules, schemes and orders;
  • the Central Electricity Authority, through safety and technical regulations;
  • the Central Electricity Regulatory Commission (CERC), for inter-state matters;
  • State commissions such as GERC, for matters within the State.

The central layer

Funding support

The Union Cabinet approved a viability gap funding (VGF) scheme for battery storage in September 2023. The Government has since told Parliament that the scheme's parameters were revised. Further VGF support has also been announced.

The scheme terms, capacities and support levels have changed since 2023. Read the current scheme document and any tender that uses it, rather than older summaries.

Transmission charges

Central orders have waived inter-state transmission system (ISTS) charges for some storage projects. The waivers come with conditions, such as how the project is configured and when it is commissioned or awarded. Some of these conditions have been revised over time.

Whether a waiver applies to your project is a project-specific question. It depends on the order in force and on how the project is configured.

Safety and technical standards

The CEA has amended its regulations on safety and electric supply to add requirements specific to battery storage. These requirements are not yet in force. Separately, the CEA's technical standards for construction are also changing to cover storage.

Plan design and procurement with these changes in view, even before they take effect. Read the notified text for the requirements and the date they apply.

The Gujarat layer

Storage obligation

In Gujarat, GERC's renewable procurement regulations of 2025 set renewable purchase obligations and an energy storage obligation for the entities they cover. Gujarat still uses the term "renewable power purchase obligation" (RPPO) in these regulations. Separately, the Energy Conservation Act, 2001 lets the Centre set a renewable consumption obligation for designated consumers. Check which of these applies to you.

GERC's battery storage regulations, 2026

GERC notified the GERC (Grid Interactive Battery Energy Storage System) Regulations, 2026 as Notification No. 10 of 2026. They were published in the Gujarat Government Gazette on 16 October 2026 and came into force on that date. They follow a draft published for comments in May 2026. In outline:

  • Who they cover. Generators, transmission and distribution licensees, standalone storage developers, captive plants, consumers and prosumers with storage under net metering and similar arrangements, and aggregators.
  • Registration. Grid-connected battery projects in Gujarat must register with GEDA. A battery built into a new renewable project needs no separate registration if that project's registration covers it. GEDA is to publish a detailed procedure.
  • Business models. Storage co-located with a generator, standalone storage, storage embedded in the network, storage behind a consumer's meter under net metering and similar arrangements, and storage linked to EV charging or battery swapping.
  • Generators and captive plants. They may install only co-located storage, charged from their own plant. Grid power drawn to charge it is billed at the temporary supply tariff, unless the plant keeps a contract demand with the discom.
  • Standalone storage. It may serve licensees, sell into the power market or provide ancillary services. It may not provide storage to renewable projects set up for captive use or for sale to third-party consumers in Gujarat.
  • Minimum size. Above 1 MW, with at least two hours of storage, connected at 11 kV or above. This does not apply at distribution transformer level, to co-located storage, or to storage under net metering and similar arrangements.
  • Procurement. Licensees procure storage as a service through competitive bidding, with an availability-based fixed charge. Other routes need GERC's prior permission in exceptional cases.
  • Operation and safety. Charging counts as drawal and discharging as injection. Scheduling follows the regulations and the Gujarat Electricity Grid Code, and the SLDC can override during grid disturbances. Safety follows the CEA safety regulations, and battery disposal follows the Battery Waste Management Rules, 2022.
  • Open access. Open access and its charges follow GERC's open access regulations.

More regulations on the way

GERC is developing further regulations on storage, ancillary services and grid access. Each could change how a storage project in Gujarat earns revenue or connects to the grid.

State policy

Gujarat issued its Integrated Renewable Energy Policy, 2025 on 24 December 2025. We assess how the policy applies to a project from its official text.

Status at a glance

InstrumentLayerStatus at last review
VGF scheme for BESS (Cabinet, September 2023)CentralApproved; terms since revised
Further VGF supportCentralAnnounced; terms to be read in official documents
ISTS charge waivers for storageCentralIssued for some projects, with conditions
CEA safety regulations, battery-specific amendmentCentralNotified; not yet in force
CEA technical standards for construction, storage provisionsCentralChanging; final text not yet confirmed
GERC renewable procurement regulations (2025), storage obligationGujaratNotified
GERC grid-interactive BESS regulations (Notification No. 10 of 2026)GujaratNotified; in force from 16 October 2026
Further GERC regulations (storage, ancillary services, grid access)GujaratBeing developed

Illustrative example

An industrial company in Gujarat is considering a battery alongside the green power it buys. Before deciding, it checks four things. First, which business model in GERC's 2026 regulations its plan fits, and whether the battery must register with GEDA. Second, how charging power is treated under the regulations and the open access rules. Third, which safety requirements will apply by the time the battery is commissioned. Fourth, whether the storage obligation in GERC's procurement regulations applies to it. The answers feed into its financial model.

What this means for a project

Storage economics depend on rules that are still moving. A sound project file labels each rule as notified, draft, under petition or announced. It also tests what happens if a draft provision changes or a waiver condition is missed. That is where financial modelling and regulatory risk comes in. Where storage sits inside a wider solar, wind or hybrid plan, see renewable energy regulatory advisory.

Sources

Official sources. The date after each link is when we last checked it.

Not legal advice. This article is general information, not legal advice. It is written without knowledge of your specific facts, and it does not say that any rule applies, or does not apply, to you. Adynta Consulting is not a law firm. This article states the position as at 9 November 2026, and each source above shows when it was last checked. Always confirm against the official text.

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