The Ministry of Power has issued the Electricity (Amendment) Rules, 2025 to revise the Electricity Rules, 2005 under the Electricity Act, 2003.
A key amendment provides clarity on the utilisation, ownership, and legal status of energy storage systems (ESS). As the amended sub-rule, ESS can now be deployed either independently or as a part of generation, transmission, or distribution infrastructure. They have also been substituted, allowing generating companies, transmission and distribution licensees, consumers, system operators, or independent ESS providers to develop, own, lease or operate ESS assets. Further, the amendment clarifies the legal status of ESS assets. If an ESS is co-located with a generation or distribution asset, it shall carry the same legal status as the asset owner. In cases where the ESS is not co-located but is still owned by a generating station or distribution licensee, it will be considered part of the owner’s assets, though its scheduling and dispatch will remain separate. The rules also permit developers or owners of ESS to lease, rent, or sell storage capacity to any entity, including those involved in generation, transmission, distribution, or system operation.