Rajasthan's Green Energy Open Access Regulations, 2025: BESS Mandate and Incentives for Captive Renewable Projects

The Rajasthan Electricity Regulatory Commission (RERC) has issued a landmark order establishing the Terms and Conditions for the Green Energy Open Access Regulations, 2025, representing a major milestone in enhancing the state’s renewable energy landscape. A key provision of these regulations is the mandatory inclusion of Battery Energy Storage Systems (BESS) for captive renewable energy projects that generate power exceeding 100% of a consumer’s contracted demand, highlighting Rajasthan’s commitment to grid stability and sustainable energy integration.

BESS Mandate for Oversized Captive Projects

Provided that new RE projects on the STU network (excluding hydro projects) with an installed capacity of over 5 MW or as may be specified by the Commission will be mandated to install ESS (of at least 2 hours storage) for a minimum of 5% of the RE capacity.

Provided further that maximum permissible capacity of individual new renewable energy based captive power plant including renewable energy based plant installed behind the meter shall be allowed upto 200% of the contract demand.

Provided also that Renewable Energy based captive power plants having capacity above 100% contract demand and upto 200% of contract demand shall be required to install Battery Energy Storage System (BESS) for a minimum 20% of the energy generated by the additional capacity RE captive plant, i.e., capacity beyond the 100% of the contract demand. This percentage of Energy to be stored may further be reviewed by the Commission through a separate order from time to time. The operation of such storage capacity shall be as directed by SLDC/Distribution Licensee through a separate order.

Under the new regulations:

(1) Captive renewable energy-based power plants are permitted to have capacities up to 200% of the consumer's contract demand.

(2) For capacities exceeding 100% of the contract demand, the integration of a BESS is mandatory.

(3) The BESS must be capable of storing 20% of the energy generated from the additional capacity above 100%.

(4) The operation of such storage capacity will be directed by the State Load Dispatch Centre (SLDC) or the Distribution Licensee through a separate order. 

This mandate aims to mitigate grid disturbances caused by excess and intermittent renewable energy injections, ensuring grid stability and reliability.

Incentives for BESS Integration

To encourage the adoption of BESS, the regulations offer several financial incentives:

Transmission and Wheeling Charge Exemptions:

(i) RE Integrated Storage project with a capacity of 5% of RE capacity will be eligible for exemption of 75% on Transmission and Wheeling charges for a period of seven (7) years. For BESS beyond 5% of RE capacity will be eligible for extra exemption of additional 1% Transmission and Wheeling charges on enhancement of each 1% capacity of storage system up to 30% capacity. For BESS beyond 30% of RE capacity, will be exempted from 100% Transmission & Wheeling charges.

(ii) Standalone Battery Energy Storage System (BESS) will be exempted 100% transmission and wheeling charge on supply of power from BESS during peak hours or non-solar hours for a period of seven (7) years.

(iii) BESS connected at 11 kV or 33 kV grid sub-stations will be exempted from 100% transmission and wheeling charges.

Provided that 50% waiver of intra-state transmission & wheeling charges will be applicable for the power produced from solar/wind plants (with/without storage) to be established for the Green Hydrogen/Ammonia plants to be set up by 2030. The transmission & wheeling losses shall be applicable as determined by the Commission

(a) Projects with BESS exceeding 30% of the renewable capacity will receive a 100% exemption on transmission and wheeling charges.

(b) Standalone BESS projects and those connected to 11 kV or 33 kV substations will also be fully exempted from these charges for seven years.

(c) Power supplied from BESS during peak hours or non-solar hours will be exempted from transmission and wheeling charges for a total capacity of 2000 MW or until such capacity is installed by 2030, whichever is earlier.

Green Hydrogen and Ammonia Production:

Projects supplying green hydrogen or ammonia and commissioned before 2030 will receive a 50% waiver on intrastate transmission and wheeling charges. 

These incentives are designed to promote energy storage adoption, enhance grid flexibility, and support the state's clean energy goals.

Benefits of BESS Integration

Integrating BESS into captive renewable projects offers multiple advantages:

Grid Stability: BESS helps in smoothing out the fluctuations in power supply, ensuring a stable and reliable grid.

Peak Load Management: Stored energy can be dispatched during peak demand periods, reducing the strain on the grid.

Enhanced Renewable Utilization: By storing excess energy, BESS minimizes curtailment of renewable power, maximizing its utilization.

Financial Savings: The exemptions on transmission and wheeling charges translate to significant cost savings for project developers. 

Strategic Implications

Rajasthan's proactive approach in mandating BESS for oversized captive renewable projects sets a precedent for other states. By aligning regulatory mandates with financial incentives, the state aims to: Accelerate the adoption of renewable energy integrated with storage solutions; Enhance the reliability and flexibility of the power grid; Support industrial consumers in achieving their sustainability targets; and Position Rajasthan as a leader in clean energy innovation.

Banking of energy shall be permitted only for captive consumption within the state, limited to the higher of 25% of monthly injected energy by the RE Captive Generating Station or 30% of the consumer’s monthly electricity consumption from the distribution licensee. Banking is not allowed for RE plants under third-party open access or behind-the-meter setups. An annual banking facility requires a Wheeling and Banking Agreement with the Distribution Licensee.

The RERC's Green Energy Open Access Regulations, 2025, represent a significant step towards a sustainable and resilient energy future. By mandating BESS integration for oversized captive projects and offering substantial incentives, Rajasthan is fostering an environment conducive to renewable energy growth and grid modernization.

For project developers and industrial consumers, this presents an opportunity to invest in advanced energy solutions that not only comply with regulatory requirements but also offer long-term economic and operational benefits.

#BESS, #Rajasthan, #India, #GreenEnergy, #OpenAccess 

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