The Rajasthan Electricity Regulatory Commission (RERC) has finalized the Rajasthan Electricity Regulatory Commission [Battery Energy Storage Systems (BESS)] Regulations, 2025. These regulations establish a regulatory framework for the planning, ownership, deployment, and operation of battery storage in the state.

The Commission limited the regulations to BESS, but allowed future extension to other storage technologies through separate orders.

The Commission finalized the regulations after addressing comments and suggestions from 11 stakeholders.

Background

RERC had issued the draft regulations in October 2025.

Rajasthan Electricity Regulatory Commission [Battery Energy Storage Systems (BESS)] Regulations, 2025, to establish a clear framework for the planning, deployment, ownership, and operation of battery storage systems in the state.

The Commission received responses from 11 stakeholders on the scope of the regulations, definitions, ownership models, planning, tariffs, consumer participation, open access, and dispute resolution.

On scope and applicability, stakeholders wanted the regulations to also cover pumped hydro, rooftop wind-charged batteries, and clearly include consumers and prosumers.

They asked for the definition of BESS to be aligned with that provided by the Central Electricity Authority, and for clearer technical definitions of battery storage capacity, ancillary services, and related energy storage terms.

They sought clarity on which storage system owners are eligible, opposed treating grid entities such as the state load dispatch center (SLDC) as traders, and requested recognition of BESS-as-a-Service models.

The stakeholders proposed detailed planning studies, coordination between utilities, smaller project size limits, and flexibility for consumers and smaller storage projects.

They asked for BESS projects to provide multiple grid services and earn revenue from them. These services include ancillary services such as frequency regulation and reserve services; capacity services to support system reliability during peak demand; market trading services; and reserve services to help maintain grid stability during sudden changes in demand or supply.

Other suggestions included clearer definitions of the BESS aggregators’ responsibilities, liabilities, and regulatory oversight, rather than leaving these definitions primarily to the SLDC.

They requested clarity on cost components, energy arbitrage rules, compensation mechanisms, renewable attributes, and tariff frameworks for different BESS models.

The stakeholders suggested that the regulations include detailed standards on battery degradation, performance testing, end-of-life capacity guarantees, and penalties for underperformance.

Regarding safety and environmental norms, the stakeholders asked that the BESS disposal rules align with the Battery Waste Management Rules, 2022, and that responsibility for adhering to these provisions be placed primarily on storage producers under extended responsibility.

The stakeholders sought clarity on cost recovery through the annual revenue requirement, the handling of transmission licensees, and the timelines for approvals and connectivity.

They asked for clear principles, technical standards, and procedures guiding SLDC decisions on scheduling, settlement, and eligibility. They also sought flexibility for BESS usage for captive supply or ancillary markets and clearer connectivity and operational treatment.Stakeholders proposed simpler rules for small storage systems, compensation for exports, and broader adoption incentives for consumers in the commercial and industrial segment.

They sought clarity on applicable open access charges and on avoiding double taxation on electricity used to charge batteries.

They also requested faster dispute mechanisms and stronger contractual protections such as force majeure, change-in-law, and investment safeguards.

Commission’s Analysis

The Commission limited the regulations to BESS, but allowed future extension to other storage technologies through separate orders. It revised some definitions to align with central frameworks and deleted terms it considered unnecessary.

RERC removed the SLDC as a market participant, clarified eligible owners, and adopted an interim deviation-settlement mechanism under the Central Electricity Regulatory Commission provisions.

It linked planning requirements to grid needs and resource adequacy.

The Commission allowed BESS projects to provide multiple services, with separate accounting and anti-gaming safeguards.

It declined the stakeholders’ request on aggregator responsibilities, stating that the SLDC can set operational procedures under Commission oversight.

RERC clarified bidding rules, charging-energy responsibilities, consumer arbitrage principles, and the retention of renewable character in discharged energy. It stated it would address issues regarding technical standards separately at a later date.

As requested by the stakeholders, RERC revised the BESS disposal provisions to align with the Battery Waste Management Rules, 2022, and the producer responsibility requirements.

For procedures that guide SLDC decisions, the Commission did not include all operational details in the regulations. Instead, it held that the SLDC must later issue procedures detailing how BESS will actually function in practice.

The Commission allowed generators and developers to set up BESS projects and enter ancillary services markets. However, it rejected their requests for priority grid access.

It allowed behind-the-meter participation by consumers and prosumers, with simplified treatment of small exports.

RERC clarified that BESS open access will be governed by the existing RERC Green Energy Open Access Regulations.

The Commission retained the dispute mechanisms from the draft regulations. It left events such as force majeure, changes in law, and similar issues to contracts.

Recently, RERC released draft amendments to its Renewable Energy Tariff Regulations, proposing to extend the current framework’s validity until March 31, 2028, and to introduce several changes affecting biomass power projects, energy storage systems, payment discipline, and open access provisions.

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