Summary:
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### **Overview**
* **Issued by:** Ministry of Power, Government of India
* **Date of Notification:** 19th September 2025
* **Legal Basis:** Section 176 of the **Electricity Act, 2003**
* **Amends:** Electricity Rules, 2005
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### **Key Amendments**
1. **Energy Storage System (ESS) Usage**
* ESS can be used **independently** or as part of **generation, transmission, or distribution**.
2. **Ownership & Operation**
* ESS may be **developed, owned, leased, or operated** by:
* Generating companies
* Transmission licensees
* Distribution licensees
* Consumers
* System operators
* Independent energy storage service providers
3. **Legal Status of Co-located Storage**
* If ESS is **co-located** with a generation plant, transmission licensee, distribution licensee, or consumer → it will have the **same legal status as the owner**.
* If **not co-located** but still owned & operated by them → it retains the owner’s legal status, but for **scheduling, dispatch, and operations** it will be treated like an **independent storage system**.
4. **Sale/Leasing Options**
* ESS developers/owners can **sell, lease, or rent out** their storage capacity (fully or partially) to:
* Consumers
* Utilities in generation, transmission, or distribution
* Load Despatch Centres
* Any other entity
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### **Implications**
* Provides **regulatory clarity** on the role of **energy storage systems** in the power sector.
* Encourages **private participation** and **market flexibility** (sale, lease, rental of storage).
* Aligns storage integration with **renewable energy growth** and **grid stability needs**.
* Ensures **legal parity** between co-located and standalone storage systems.
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