Rajasthan Proposes Rules To Bring Clarity On BESS Deployments

The Rajasthan Electricity Regulatory Commission (RERC) has now brought forth a draft regulation to bring more clarity on the deployment of Battery Energy Storage Systems (BESS). The state power regulator has framed the regulations to define the minimum project size for large projects, roles and liabilities of power generators, discoms, and the State Load Dispatch Centres (SLDCs).

The newly proposed regulations have been named the RERC (Battery Energy Storage Systems) Regulations, 2025. The agency said that these were framed with the objective of establishing a comprehensive regulatory framework for the planning, procurement, deployment, and utilisation of Battery Energy Storage Systems (BESS) in the State of Rajasthan.

Here are the key takeaways from the draft regulations:

1. Applies to Whom?

As per the regulations, these will apply to all Licensees, Generating Companies, Renewable Energy Developers, Aggregators, Battery Energy Storage System (BESS) Service Providers, Consumers, and other entities involved in the Planning, Procurement, Deployment, Operation, or Utilization of Battery Energy Storage Systems within the State of Rajasthan.

2. Technology Neutral

The regulations said that BESS deployment in the state could be technology neutral if it can ensure compliance with its eligibility criteria. “These regulations are intended to be technology neutral and shall apply to all forms of battery energy storage systems that meet the required technical and performance standards, ensuring the framework remains relevant as technology evolves,” the norms said.

3. Co-located or Standalone

The norms said that BESS might be deployed as co-located with renewable sources and conventional generators, grid-connected standalone storage, embedded in the distribution or transmission network, besides being behind the meter at the consumer level or integrated with Electric Vehicle infrastructure for vehicle-to-grid services.

“The Battery Energy Storage System shall be utilised either as an independent battery energy storage system or as part of the generation, transmission, or distribution system or integrating the consumer’s load independently or with RE sources co-located behind the meter,” the regulations said.

5. Owning and Leasing, Both Allowed

RERC’s draft regulation said that these BESS units could either be owned or leased for operations. “The Battery Energy Storage System can be developed, owned, leased, or operated by a generating company, a transmission licensee, a distribution licensee, a consumer, a system operator, or an independent battery energy storage service provider,” the regulations said.

6. SLDC Consultation Needed in Planning

The draft rules mandate the mandatory consultation of the discoms and the State Transmission Utility (STU) with the State Load Despatch Centre (SLDC) for the process of planning. It also asked the discoms and STU to plan the requirement of BESS within their respective areas of operation, keeping in view the technical considerations, system reliability, and load requirements.
It also talked about the planning process for BESS deployment. It said, “The holistic system requirements, including but not limited to, managing reverse power flow from lower to higher voltage at various substations, addressing transmission or distribution network congestion, mitigating high renewable energy penetration challenges, and resolving voltage or frequency stability issues, shall be the criterion for finalizing the BESS locations in the Distribution System or Transmission System by Distribution/Transmission licensees.”

7. BESS for Ancillary Services

The RERC rules also talked about the utilisation of BESS for ancillary services. It said, “BESS shall be eligible to provide services such as frequency regulation, spinning reserves, voltage support, black start services, and demand response services or any other services defined in IEGC/REGC amended time to time.”

8. Tariff & Market Participation

The draft regulation also said that all procurement of BESS capacity and services by the licensees should be undertaken only through tariff-based competitive bidding. “Battery Energy Storage Systems (BESS) owned or operated by consumers shall be permitted to participate in energy arbitrage by purchasing electricity from the grid during off-peak hours and selling it back to the grid during peak hours,” it said.

It also said that consumers may install the Battery Energy Storage System either as a standalone system or in conjunction with a solar power plant.

“Provided also that consumers shall be allowed to operate the BESS in such a manner that the energy stored in the system, installed behind the consumer’s meter, may be utilized for self-consumption or supplied to the Distribution Licensee during peak hours for which Commission may specify incentivized tariff.”

9. BESS and RPO Compliance

The draft regulations framed by RERC said that renewable energy procured and used for charging BESS should retain its renewable character upon discharge and consumption. Accordingly, obligated entities or consumers shall be eligible to claim the RPO/RCO benefit for such consumption.

10. 1 MW Minimum Individual Project

The draft regulations also defined the minimum individual project size for BESS projects. “The minimum individual project size shall have a power rating of 1MW and above, with a suitable energy rating of at least two hours, connected at 11 kV or above. Provided that this minimum size does not apply to BESS at the Distribution Transformer (DTR) level or for behind-the-meter applications by consumers.”