Power Ministry Issues Guidelines for Battery Storage as part of Generation, Transmission and Distribution assets, along with Ancillary Services

<Guidelines No. 23/16/2020-R&R Part (1)/10.03.2022]

The Ministry of Power on March 10, 2022 has issued Guidelines for Procurement and Utilization of Battery Energy Storage Systems as part of Generation, Transmission and Distribution assets, along with Ancillary Services.

• The objectives to provide these guidelines are as followed:

1. To facilitate procurement of BESS, as part of individual RE power projects or separately, for addressing the variability/firming power supply / increasing energy output / extending the time of supply from an individual RE project or a portfolio of RE projects, augmentation of existing RE Projects and/or to provide ancillary, grid support and flexibility services for the grid.

2. To facilitate procurement of BESS for optimum utilization of transmission and distribution network.

3. To ensure transparency and fairness in procurement processes/ and to provide for a framework for an Intermediary Procurer as an Aggregator / Trading licensees / Implementing Agency for the inter-state/intra-state sale-purchase of power.

4. To provide standardization and uniformity in processes and a risk-sharing framework between various stakeholders, involved in the energy storage and storage capacity procurement, thereby encouraging competition and enhanced bankability of the Projects.

• The Applicability of the guidelines are as followed:

These Guidelines are being issued under the provisions of Section 63 of the Electricity Act, 2003 for procurement of energy from BESS by the ‘Procurers’, through competitive bidding, from grid- connected Projects to be set up on “Build-Own-Operate” or “Build-Own-Operate-Transfer” basis, with following minimum project size and bid capacity requirements:

(i) For Intra-State Projects: Minimum individual project size of power rating of 1MW and above with suitable energy rating based on application at one site with minimum bid capacity of 1MW; and

(ii) For Inter-State Projects: Minimum individual project capacity of 50 MW and above with suitable energy rating based on application at one site with minimum bid capacity of 50 MW at the minimum voltage level as specified by the extant CERC regulations/Detailed Procedure.

The provisions of these Guidelines shall be binding on the BESSD /Procurer/ Intermediary Procurer/End Procurer/Implementing Agency and the Authorised Representative of the Procurer. The process to be adopted in event of any deviation proposed from these Guidelines is specified in Clause A, Section V of these Guidelines.

[Resolution No. 23/16/2020-R&R Part (1)]