Rajasthan’s Draft BESS Regulations 2025: A Strategic Blueprint for Grid Stability and Renewable Integration

The Rajasthan Electricity Regulatory Commission (RERC) has released the draft Battery Energy Storage Systems (BESS) Regulations, 2025, marking a pivotal step in institutionalizing energy storage across the state’s power sector. This regulation provides a comprehensive framework for ownership, deployment, utilization, and tariff mechanisms for BESS, aligning Rajasthan with national ambitions for a flexible, decarbonized grid.

Key Highlights of the Draft Regulation

• Ownership Models: BESS can be developed by transmission licensees, distribution licensees, or independent power producers (IPPs), enabling public-private participation.

• Minimum Project Size: Large-scale BESS projects must meet defined capacity thresholds to ensure economic viability and grid impact.

• Utilization Scope: BESS may be used for peak load shaving, frequency regulation, voltage support, renewable energy firming, and congestion management.

• Tariff Determination: RERC will determine tariffs for BESS services based on cost-plus or competitive bidding mechanisms, ensuring transparency and investor confidence.

• Grid Integration: Emphasis on interoperability, safety standards, and performance benchmarks to ensure seamless integration with SLDC operations.

• Captive Projects Clause: Captive RE projects exceeding 100% of contract demand must install BESS capable of storing at least 20% of the excess generation.

Stakeholder-Wise Benefits and Roles

Stakeholder	Role Under Regulation	Key Benefits
DISCOMs	Procure BESS services for peak shaving, RE integration, and voltage support	Reduced power purchase costs, improved grid reliability
Transmission Licensees	Own/operate BESS for congestion relief and ancillary services	Enhanced transmission efficiency, deferred infrastructure upgrades
Independent Power Producers (IPPs)	Develop co-located or standalone BESS projects	New revenue streams via ancillary services and capacity markets
Captive Consumers	Required to install BESS for excess RE capacity	Grid compliance, improved energy reliability
SLDCs	Schedule and dispatch BESS for grid balancing	Real-time flexibility, reduced curtailment of renewables
Investors/Developers	Bid for BESS projects under competitive frameworks	Policy clarity, bankable revenue models
Renewable Generators	Integrate BESS for firming and time-shifted dispatch	Higher grid acceptance, reduced curtailment

Strategic Implications

• Grid Resilience: BESS enables real-time balancing, reducing reliance on fossil-based peaking power.

• Renewable Integration: Facilitates higher penetration of solar and wind, especially in Rajasthan’s desert zones.

• Market Development: Competitive procurement and tariff clarity attract private investment and innovation.

• National Alignment: Supports India’s 500 GW non-fossil target and complements SECI’s BESS tenders and MNRE’s Green Hydrogen Mission.

Rajasthan’s draft BESS regulations are not just a state-level reform—they represent a scalable template for other states. By clearly defining stakeholder roles, technical standards, and tariff mechanisms, RERC has laid the groundwork for a robust energy storage ecosystem. As India moves toward a flexible, renewable-rich grid, such regulations will be instrumental in harmonizing state and national efforts.

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